In opaque and unregulated financial markets, there can be strong incentives for banks to provide loans even when the appropriate guaranties or assessments are lacking. This is part of the Mozambican debt story, according to NAI researchers Navarra and Rodrigues. In this case, the consequences are most likely to be borne by Mozambican people, strongly affecting thei...

In opaque and unregulated financial markets, there can be strong incentives for banks to provide loans even when the appropriate guaranties or assessments are lacking. This is part of the Mozambican debt story, according to NAI researchers Navarra and Rodrigues. In this case, the consequences are most likely to be borne by Mozambican people, strongly affecting thei...

As public debts are increasing in many African countries, we see a new type of debt distress, where short-term commercial loans and bonds have replaced some of the long-term multi- and bilateral loans. This policy note highlights two topical questions: what lies behind increasing levels of debt in Africa, and what are the challenges when financing development proje...

As public debts are increasing in many African countries, we see a new type of debt distress, where short-term commercial loans and bonds have replaced some of the long-term multi- and bilateral loans. This policy note highlights two topical questions: what lies behind increasing levels of debt in Africa, and what are the challenges when financing development proje...

As public debts are increasing in many African countries, we see a new type of debt distress, where short-term commercial loans and bonds have replaced some of the long-term multi- and bilateral loans. This policy note highlights two topical questions: what lies behind increasing levels of debt in Africa, and what are the challenges when financing development proje...

As public debts are increasing in many African countries, we see a new type of debt distress, where short-term commercial loans and bonds have replaced some of the long-term multi- and bilateral loans. This policy note highlights two topical questions: what lies behind increasing levels of debt in Africa, and what are the challenges when financing development proje...

Nearly half of Africa’s economies are on the brink of debt distress. Unlike previous debt crises, the current one is characterised by a shift from multilateral to commercial and bilateral creditors, notably China, and the proliferation of Eurobonds. Pressured by heavy debt burdens, there is a risk that African governments divert funds from essential sectors such as...