African Debt since HIPC

The paper finds a moderate evolution in public debt ratios since debt relief among heavily indebted poor countries (HIPC) and multilateral debt relief initiative (MDRI) recipient countries in Sub-Saharan Africa, with certain exceptions. For eight countries the authors find rapid rates of debt accumulation, which can return them to pre-HIPC debt levels in only a few years. Short-term domestic debt has, despite early fears, in general not filled the borrowing space created by debt relief. However, external debt accumulation on commercial terms in some cases presages repayment spikes, which may combine with short-term domestic obligations to amplify refinancing risk and cause abrupt reductions in public spending, with damaging consequences for development. Finally, despite reduced debt, African economies continue to be commodity dependent and prone to shocks. As global interest rates and commodity prices revert to historically more customary levels, these countries should remain prudent: avoid tax-base erosion, prevent large recurrent spending hikes, and invest wisely in growth, by executing projects effectively to enhance infrastructure. These fiscal fundamentals will be as important for debt sustainability as how much is borrowed and on which terms.

Bibliographic Details

Main Authors:	Merotto, Dino, Stucka, Tihomir, Thomas, Mark Roland
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2015-03
Subjects:	LIVING STANDARDS, DEBT ACCUMULATION, CAPITAL MARKETS, DEBT SUSTAINABILITY ANALYSES, BORROWER, REPAYMENT CAPACITY, INTERNATIONAL CAPITAL, PAYMENT OBLIGATIONS, STOCK, FISCAL DEFICITS, MACROECONOMIC MANAGEMENT, INTEREST, DOMESTIC BORROWING, PUBLIC INVESTMENTS, GUARANTEES, DEBT STOCK, INTEREST RATE, EMERGING ECONOMIES, EXCHANGE, GOVERNMENT REVENUES, DISCOUNT RATE, ISSUANCES, LIQUIDITY, DEBT MANAGEMENT, DEBT STATISTICS, DEBTOR, REPAYMENTS, EMERGING MARKET DEBT, INTERNATIONAL CAPITAL MARKETS, DOMESTIC DEBT MARKET, REVENUES, PORTFOLIO, FISCAL POLICY, BONDS, DOMESTIC DEBT MARKETS, DOMESTIC INTEREST RATES, LOAN, CAPACITY BUILDING, DEBT POLICY, DISCOUNT, TAX, DEBT DATA, DOMESTIC PUBLIC DEBT, MULTILATERAL DEBT RELIEF, INTERNATIONAL BANK, CREDITORS, CREDITOR, LENDER, INSTRUMENTS, DEBT PAYMENT, BUDGET, MATURITY, SHORT-TERM INSTRUMENTS, BOND ISSUANCES, DOMESTIC DEBT STATISTICS, INTERNATIONAL FINANCE, STOCK OF DEBT, COMMERCIAL CREDITORS, INDEBTEDNESS, CURRENCY, DEBT RESCHEDULING, EXTERNAL DEBT ACCUMULATION, INTERNATIONAL BOND MARKETS, BULLET REPAYMENTS, DEBTS, BOND ISSUANCE, EXCHANGE RATES, OPTIONS, INTERNATIONAL BOND, INTEREST RATES, MONETARY FUND, SOVEREIGN BOND, EMERGING MARKET, EXTERNAL INDEBTEDNESS, FINANCIAL INSTITUTIONS, MARKETS, DEBT, LOW DEBT, EXTERNAL DEFICITS, RETURN, DEFICITS, RATIOS OF DEBT, DEBT FLOWS, LENDERS, INTERNATIONAL DEBT, INCOME LEVELS, MULTILATERAL DEBT, DOMESTIC DEBT, LOANS, RESERVES, DEBT SERVICE, FINANCE, FOREIGN CURRENCY, PUBLIC INVESTMENT, INTERNATIONAL FINANCIAL INSTITUTIONS, DEBT MANAGERS, TRANSACTIONS, DEBT LEVELS, CREDIT LINE, INVESTMENT BANKS, INVESTORS, DEBT RATIO, BOND MARKETS, COUPON DATE, GOOD, GOVERNMENT BUDGET, DEBT MANAGEMENT STRATEGY, DEBT MANAGEMENT STRATEGIES, FUTURE, COMMERCIAL TERMS, COMMERCIAL DEBT, PURCHASING POWER, REPAYMENT, GOVERNMENT REVENUE, DISBURSEMENTS, ISSUANCE, INSTITUTIONAL CAPACITY, SHARES, FACE VALUE, COUPON RATE, MARKET, DEFAULT, DEBT RATIOS, MARKET DEBT, PUBLIC DEBT, SOLVENCY, AVERAGE DEBT, DEBT MARKETS, DEBT MARKET, ACTIVE DEBT, DEBT INSTRUMENTS, INVESTMENT, BOND, EUROBOND, COMMERCIAL BANKS, SOVEREIGN BONDS, SHARE, SHORT MATURITIES, DEBT RELIEF INITIATIVE, POVERTY, DEBT OBLIGATIONS, EXTERNAL PUBLIC DEBT, COUPON, REVENUE, EXTERNAL DEBT, INVESTMENTS, LENDING, DEBT REPAYMENT, DEBT MANAGEMENT OFFICE, DEBT SERVICE TO EXPORTS, VARIABLE INTEREST RATES, MATURITIES, DEBT SUSTAINABILITY, PUBLIC DEBT STOCK, REMITTANCES, PUBLIC SPENDING, COMMODITY PRICES, ARREARS, INTERNATIONAL MARKETS, CAPITAL ACCOUNT, DEVELOPMENT BANK, INCOME LEVEL, EXTERNAL BORROWING, DEBT RELIEF, DEBT MATURITY,
Online Access:	http://documents.worldbank.org/curated/en/2015/06/24677892/african-debt-hipc-clean-slate https://hdl.handle.net/10986/22399
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