News & Analysis: Debt and debt relief

From stimulus to debt: The case of South Africa

“The COVID-19 pandemic has seen the widespread use of expansionary fiscal policies which, in terms of scale, is simply unprecedented. Crucially, for many countries in sub-Saharan Africa, these fiscal stimulus packages have deepened their debt challenges.”

via Brookings Institution

Ethiopia asks for debt relief as COVID-19 takes toll

“Ethiopia has asked for debt relief under a G20 programme to help poor countries reeling under the economic impact of coronavirus, making it the second African country to do so in the past week.”

via Financial Times

Chad becomes first country to ask for debt overhaul under G20 common framework

“Like several other African countries, Chad is struggling with a high debt burden against a backdrop of the coronavirus crisis and low prices for oil, its major export.”

via Reuters

Memo to Leaders: Three ‘no regret’ decisions for financing Africa’s post-COVID-19 future

To contain the economic damage of the pandemic and capitalize on the region’s underlying strengths, national and international leaders need to pursue urgent action.

via COVID-19 Africa Watch

Managing COVID-19’s Impact on Africa’s Sovereign Debt: An Interview with Danny Leipziger

COVID-19 Africa Watch talks to Danny Leipziger, Professor of International Business at the George Washington University, about debt and debt relief amid the ongoing coronavirus pandemic.

via COVID-19 Africa Watch

Paris Club of international creditors accept Kenya debt relief request

“The Paris Club of international creditors said on Monday it had accepted a request from Kenya for a debt-servicing suspension from January to the end of June.”

via Reuters

An Africa unconstrained by a self-fulfilling debt narrative will rebound after COVID-19

“Africa’s debt narrative tends to forget the agency of African governments and instead focuses on portraying other players either as saviors or bogeymen.”

via Quartz Africa

World Bank sees more countries in ‘deep debt distress’ this year

“Chad and several other countries are already in deep debt distress and more will join their ranks this year, given the severity of the global recession triggered by the COVID-19 pandemic, World Bank Group President David Malpass said.”

via Reuters

Huge borrowing, COVID-19 shocks, leave region in a funding dilemma

“Excessive borrowing prior to the pandemic pushed countries closer to the debt ceiling with debt-to-GDP ratios now exceeding 50 percent. This leaves little room for external borrowing as the year starts.”

via The East African

Debt forgiveness will top the African agenda in 2021

“African debt will become a greater global concern in 2021 as many African states remain the world’s poorest and most fragile and have been hard hit by the economic and financial costs imposed by the pandemic.”

via Mail & Guardian