The recovery in global risk appetite and in commodity prices has eased strains in balance of payments across the region. But conditions remain much worse than the they were before the crisis flared up. And while many EM sovereigns have tapped global capital markets in recent weeks, the yields on most African dollar debt still look prohibitively expensive. Indeed, a growing number of countries are taking up bilateral debt relief initiatives. Given the extent of the fiscal hit, it seems likely that the current G20 initiative will need to be extended and/or private sector creditors will need to endure losses.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services