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Browsing: debt defaults in Africa
The decline in economic output brought about by certain policies and measures to curtail the COVID-19 pandemic has increased the risk of debt defaults among African countries.
This was revealed on Friday July 2, 2021 during the launch of the African Development Bank’s comprehensive five-year Strategy for Economic Governance in Africa (SEGA).
According to the document, public debts had exceeded 50% of GDP. According to AfDB, Africa has increased its debt at a faster rate than any other region over the last decade.
The bank said that there had been a corresponding increase in the risk of debt defaults following the increase in public debt stock.
It also revealed that at least 24 African countries had applied for the Paris Club–led Debt Service Suspension Initiative.
“The risk of defaults on debt, much of which is now non-concessional, has increased. At least 24 African countries have applied for the Paris Club–led …