Debt moratoriums, South Africa’s policy response

This week’s G20 deal allowing low-income countries – many in Sub-Saharan Africa – to freeze debt payments on bilateral loans will provide much needed reprieve, most notably in Angola. But broader debt restructurings, including private bondholders, may still be needed in many places to ensure debt sustainability. In South Africa, the government's fiscal response continues to be held back by concerns about the public finances. Some form of short-term IMF deal is looking increasingly likely and, in the meantime, the central bank will continue to provide policy support.