African nations at risk of economy crippling debt, IMF warns

The International Monetary Fund (IMF) has warned African countries are increasingly threatened by economy crippling debt, despite overall economic growth across the continent.

The global financial institution says heavy borrowing and massive deficits are behind the trend, as sub-Saharan African governments increasingly tap into global debt markets.

Spurred on by massive investor demand for government bond yields, some African states are also issuing “record levels” of foreign currency debt, pushing their countries to the brink of debt distress, the IMF said.

It said that about 40% of low-income countries in the region are now in debt distress or at high risk, adding that refinancing such debt could soon become more costly.

In its recent outlook for the region, the IMF named six…

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