Fitch Warns Africa Risks Falling Back Into Financial ‘Distress’

Sub-Saharan African states have borrowed so much money since the debt forgiveness programmes earlier this century that they risk falling back into financial distress, Fitch warned today, the Financial TImes reported. However, the rating agency argued that multilateral debt relief had not been squandered, as some have argued, because it has “delivered lasting benefits” in the form of faster economic growth and improvements in measures of human development. Between 2001 and 2015, 36 states, all but six in Africa, had $76bn of debt wiped off as part of the Heavily Indebted Poor Countries and Multilateral Debt Relief Initiatives. Read more

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