BloombergRecord commodity prices and low global interest rates have encouraged African nations to borrow like they did in the 1990s, but some are now struggling to pay up as their revenue slows along with economic growth. IMF managing director Kristalina Georgieva last month said that this was a cause for concern. Of the 54 countries on the continent, 20 are near or at distressed levels, according to the IMF, which means they face difficulties honoring their obligations. “Some individual countries are getting to higher levels in terms of debt-to-GDP ratios, that’s the concern,” African Development Bank president Akinwumi Adesina said in an interview. Overspending and crashing commodity prices in the 1990s led to a debt crisis that prompted multilateral lenders and rich nations to write off the obligations of dozens of African countries in 2005.

Source: Taipei Times December 10, 2019 16:07 UTC