Posted 1/21/2024, 3:58:17 AM
African Nations Trapped in Vicious Debt Cycle, Squeezing Development Capacity
- Several sub-Saharan African countries are in a debt spiral and already in default
- Rise in interest rates and over-indebtedness is crimping countries' ability to finance development
- After 2007-09 crisis, developing countries rushed to low-cost loans with no regulation
- Fall in commodity prices since 2015 squeezed revenues countries needed to service debts
- COVID pandemic further aggravated the debt situation