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Le surendettement nouveau et les pays africains « frontiere » face au mur de la dette

Author

Listed:
  • Marc Raffinot

    (Université Paris Dauphine, LEDa DIAL, PSL)

  • Babacar Sene

    (Université Cheikh Anta Diop de Dakar, LAFIDEV)

  • Marin Ferry

    (Université Gustave Eiffel, UGE)

Abstract

Since 1960, and up to the early 2000s, the financing of poor countries has been mostly based on grants, concessional loans (with conditions that are softer than the market), financing close to market finance but rationed and subject to conditions. Since 2007, a number of low-income and lower-middle-income African countries have sought to break out of this paradigm by borrowing on the international financial markets, notably in the form of Eurobonds. These countries are referred to as "frontier countries" because their access to the market is not well established yet. Such borrowing increases the risks, particularly in terms of refinancing, but * 1 Université Paris Dauphine, LEDA DIAL. 2 Université Cheikh Anta Diop de Dakar, LAFIDEV. 3Université Gustave Eiffel, UGE 1 can also tighten up budgetary discipline by imposing stronger constraints. From 2007 up to the mid-2010s, the economic climate was fairly favourable, before it turned around from 2019 onwards with the Covid pandemic, the tightening of monetary policy in the United States and then in Europe, and the invasion of Ukraine. Zambia and Ghana in particular have defaulted, and the restructuring of their debt keep posing a problem given the multiplicity of creditors, which renders the old practice centred on the Paris Club ineffective. The restructuring of Zambia's debt is the first test of the G20's new Common Framework, which has yet to demonstrate its ability to resolve debt problems to the satisfaction of all stakeholders.

Suggested Citation

  • Marc Raffinot & Babacar Sene & Marin Ferry, 2024. "Le surendettement nouveau et les pays africains « frontiere » face au mur de la dette," Working Papers DT/2024/03, DIAL (Développement, Institutions et Mondialisation).
  • Handle: RePEc:dia:wpaper:dt202403
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    More about this item

    Keywords

    Dette publique; dette extérieure; pays frontière; prêts concessionnel; eurobonds; Club de Paris; Common Framework;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

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