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Africa says debt moratorium is positive but falls short

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AFP Abidjan
Last Updated : Apr 17 2020 | 12:22 AM IST

Moves by rich countries to freeze debt repayment for poor nations grappling the coronavirus crisis are positive but fall far short of a real fix, African experts say.

The agreement on debt, announced by the Group of 20 wealthier nations, is a one-year freeze on payment of debt owed by 76 poor nations, 40 of which are in Africa.

Africa's overall debt stands at around $365 billion (336 billion euros), around a third of which is owed to China. The world's weakest economies will be able to free up precious cash for immediate needs but will still struggle under a mountain of debt, experts say.

"It provides a breathing space," said Hassane Boukar of a Niger citizens' group called AEC.

"There will be a lot of spending ahead in fighting the coronavirus pandemic," he said. "The fact that there is a moratorium helps these states to mobilise funds that they otherwise would have had to earmark for repaying debt."

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First Published: Apr 17 2020 | 12:22 AM IST

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