Africa wants IMF, World Bank and EU support on debt relief – UNECA

They also called for the creation of a special purpose vehicle to ‘deal with all sovereign debt obligations.’
Image: Shutterstock

African finance ministers want International Monetary Fund, World Bank and European Unions support for bilateral, multilateral and commercial debt relief, according to a statement from the UN Economic Commission for Africa.

The ministers, who met via video conference on Tuesday, said development partners should consider debt relief and interest rate forbearance over a two to three-year period to aid Africa‘s coronavirus response.

They also called for the creation of a special purpose vehicle to “deal with all sovereign debt obligations” though no further details were given as to what shape this SVP would take.

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why dont these idiot fanance ministers start by giving their own people debt relief – from taxes like VAT, Municipal rates and such things. They want to hold out their grimy paws but wont even think about helping their own people

No self-respect whatsoever.

Uhuru – the slogan of African Nationalists. What is the difference between ‘’debt forgiveness and ‘’mahala’’ ?

I was waiting for the ‘’debt forgiveness’’ call Out Of Africa for some time now – and now it finally came.

The decolonisation calls methinks was made and based on the assumptions that Africa had a strong economic base – most African countries attained independence in the 1960s.

African foreign trade thereafter exhibited at least 5 major defects which I think today, is largely responsible for its debt crisis:

Very high and unreasonable export dependence
High concentration on only a few commodities
Low and declining terms of trade (SAs latest Chicken problem highlighted this again for me)
High instability of exports earnings due to these factors
A chronic balance of payments crisis (due to a plethora of reasons – political instability and corruption etc.)

Post-Colonial Africa just never got it right – promises of improved living conditions – as promised under the anti-colonial ideologies of legitimation evaporated over time.

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