Spectre of debt defaults haunts EA as Covid-19 shrinks exports, taxes
An Ethiopian Airlines plane delivers medical equipment to help combat Covid-19, whose impact continues to ravage the region’s economies. PHOTO | FILE | NMG
East African countries face a higher risk of debt defaults as governments grapple with shrinking tax revenues, lower export earnings, as well as limited access to external resources.
The Covid-19 pandemic has amplified this vulnerability with debt-to-GDP ratios exceeding 50 percent.
