Policy Dialogue on Raising and Managing Debt for post-COVID recovery
The COVID-19 crisis has exacerbated existing debt vulnerabilities as well as created new fiscal challenges for governments worldwide. Borrowing requirements will remain high, due to weaker economic recoveries and higher inflation expectations in developed countries. Debt levels in Africa are on an upward debt trajectory and soon debt service relative to tax revenues is to exceed 20 percent, potentially crowding other critical spending. To avoid further fiscal deterioration, the risks in the debt portfolios should be actively managed, to maintain and reduce costs.
Given the high debt levels, at the request of public debt managers, CABRI facilitated a Policy Dialogue which focused on the four most prominent risks currently experiencing by public debt managers in Africa:
- Managing refinancing risks in a volatile and uncertain environment
- Exploring innovative funding opportunities in 2021 and beyond
- Improving investor relations and market communication during a crisis
- Taking stock of recent sovereign debt restructurings and relief operations