A decade after write-offs, Africa sliding back into debt trap
African states that have borrowed heavily in dollars may be slipping back into the debt trap only a decade after a far-reaching round of debt forgiveness. PHOTO | FILE
With their economies floundering and currencies sinking, African states that have borrowed heavily in dollars may be slipping back into the debt trap - and ultimately default - only a decade after a far-reaching round of debt forgiveness.
Some are looking to issue more Eurobonds to refinance existing foreign currency loans, but with US interest rates set to rise soon, the inevitably higher borrowing costs will do little to alleviate pressure on creaking state budgets.
