Meeting on Saturday 21 and Sunday 22 July in Buenos Aires (Argentina), the 20 most powerful economies of the planet have been concerned about the evolution of public debt in Africa.
The IMF presented a gloomy picture showing that 6 of the 45 countries in sub-Saharan Africa are already in debt distress and nine would be approaching this extreme case.
The fear of the scenario of the 80s and 90s is reflected in the speeches. Big difference however compared to the crisis of the time, the African debt is today exposed on the Eurobonds, ie private creditors more demanding on the remunerations restive and resettlement.
The other fact, compared to the 1980s, is China, which is now the largest public creditor with 14% of the total amount outstanding. At the very least, Beijing does not seem eager to join the Paris Club.
The continent’s public debt has doubled in five years to 57% of GDP. Over the same period, debt service jumped from 4% to 11% of budget revenues.
