Working Paper

Borrow with Sorrow? The Changing Risk Profile of Sub-Saharan Africa's Debt

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Calderon, Cesar
dc.contributor.author
Zeufack, Albert G.
dc.date.accessioned
2020-02-06T16:44:52Z
dc.date.available
2020-02-06T16:44:52Z
dc.date.issued
2020-01
dc.date.lastModified
2022-07-05T06:10:36Z
dc.description.abstract
In the post-global financial crisis period, the financing of countercyclical policies led not only to a reduction in the fiscal surpluses across Sub-Saharan African countries, but also an increase in their levels of indebtedness. Although public debt for the region in 2018 was still below that of the pre-debt forgiveness period, the risk profile of public debt has sharply increased. The share of concessional public debt has been declining while that owed to private creditors and non–Paris Club bilateral creditors has been rising. The resulting reconfiguration of public debt has led to increased debt service in the region. Hence, the higher risk profile of debt and rising payments might lower the threshold for debt distress in the region. Addressing public debt vulnerabilities requires the buildup of external and fiscal buffers by conducting prudent fiscal policies and implementing growth-enhancing reforms, and the strengthening of debt management practices. However, the policy toolkit can be enlarged by gradually moving from debt management to balance-sheet management of the public sector, and policies to boost the efficiency of public investment.
en
dc.identifier
http://documents.worldbank.org/curated/en/370721580415352349/Borrow-with-Sorrow-The-Changing-Risk-Profile-of-Sub-Saharan-Africas-Debt
dc.identifier.uri
http://hdl.handle.net/10986/33293
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 9137
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
DEBT SUSTAINABILITY
dc.subject
DEBT SERVICE BURDEN
dc.subject
DEBT COMPOSITION
dc.subject
BOND ISSUE
dc.subject
FISCAL TRENDS
dc.subject
COUNTERCYCLICAL POLICY
dc.title
Borrow with Sorrow? The Changing Risk Profile of Sub-Saharan Africa's Debt
en
dc.type
Working Paper
en
okr.crossref.title
Borrow with Sorrow? The Changing Risk Profile of Sub-Saharan Africa's Debt
okr.date.disclosure
2020-01-30
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/370721580415352349/Borrow-with-Sorrow-The-Changing-Risk-Profile-of-Sub-Saharan-Africas-Debt
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-9137
okr.identifier.externaldocumentum
090224b087597815_2_0
okr.identifier.internaldocumentum
31743945
okr.identifier.report
WPS9137
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/370721580415352349/pdf/Borrow-with-Sorrow-The-Changing-Risk-Profile-of-Sub-Saharan-Africas-Debt.pdf
en
okr.region.administrative
Africa
okr.region.geographical
Sub-Saharan Africa
okr.statistics.combined
2854
okr.statistics.dr
370721580415352349
okr.topic
Finance and Financial Sector Development :: Debt Markets
okr.topic
Finance and Financial Sector Development :: Debt Relief and HIPC
okr.topic
International Economics and Trade :: Capital Flows
okr.topic
Macroeconomics and Economic Growth :: Business Cycles and Stabilization Policies
okr.topic
Macroeconomics and Economic Growth :: Economic Adjustment and Lending
okr.topic
Macroeconomics and Economic Growth :: Fiscal & Monetary Policy
okr.unit
Office of the Chief Economist, Africa Region

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