RONAK GOPALDAS: African leaders and private creditors have to tiptoe through a minefield of debt
Urgent intervention is needed to prevent a messy blowout of the continent’s Eurobonds
Financial markets, and in particular emerging-market assets, have been ravaged by the coronavirus pandemic, and African Eurobonds have fallen firmly into the firing line.
A number of the continent’s fragile economies have been hit by the triple whammy of falling commodity prices, rampant currency depreciation and, most critically, a crisis of confidence. This has led to an exodus of capital, driven up their cost of funding and put further pressure on their already strained balance sheets. With yields on African Eurobonds spiking universally, fears of a credit event emanating from the continent are growing...