Lessons from Africa’s sovereign debt restructurings

Ghana’s relatively quick progress in debt restructuring talks with creditors contrasts with the slow experiences of Ethiopia and Zambia. Much of this can be explained by the China’s role in discussions, but private bondholders are also playing hardball. The G20 Common Framework appears incapable of bridging differences amongst creditors. Reform is needed otherwise many other governments that fall into debt distress will face equally lengthy restructuring talks and an accompanying hit to growth.