Borrowing Costs For African Nations ‘Have Doubled’ – Report

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Managing Director and Chair of the International Monetary Fund, Ms Christine Lagarde

A new report says debt problems are worsening on the African continent, with governments’ external debt payments doubling over the last two years.

The UK-based Jubilee Debt Campaign says the greater proportion of the loans are from international lenders including the World Bank and IMF – as well as private sector loans, which have higher interest rates.

Researchers estimate that China is owed about 20% of African nations’ external government debt – a lower number than some might have expected. There has been growing concern that China has been causing new debt traps in Africa, as governments take out large loans to build infrastructure projects.

The UK-based charity has called for new rules to ensure there is greater transparency for all loans.

[BBC]

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