Debt relief: the state of play and what’s next

There has been much less progress towards debt relief for African economies than many had hoped. And governments’ diverse array of creditors means that the “Common Framework” recently unveiled by the G20 to help debt distressed EMs will struggle to gain traction. Most governments are likely to have to live with higher debt burdens, which will come at the cost of austerity and weak growth. The few that find themselves in severe stress in the future may follow Zambia down the path of a disorderly default.