East African states entangled in lenders’ debt relief fiasco
The G20 is now replacing the suspension initiative with a Common Framework for Debt Treatments – a debt restructuring scheme by the end of December this year. PICTURE | COURTESY
East African countries are facing more pressure to pay their loans after the world’s richest nations executed a botched debt relief plan that has pushed over half of the world’s poorest countries to external debt distress.
The Debt Service Suspension Initiative (DSSI) by the world’s 20 wealthiest economies commonly referred to as the ‘G20’ has not helped poor countries ward off the devastating effects of the Covid-19 pandemic as foreign creditors, particularly banks and pension funds, demand to be paid their loans.
