Abuja — Some African countries may seek to exchange their sovereign debt for new concessional paper to avoid using funds needed to battle the fast-moving coronavirus to pay private creditors, according to a United Nations body.

The AU, the UN Economic Commission for Africa and a group of finance ministers from the continent are designing a special-purpose vehicle (SPV) for the swap. The mechanism would be underwritten by a triple-A-rated multilateral lender or central bank and used to convert commercial debt into longer-maturity paper with a five-year grace period and lower coupons, according to the commission. ..

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now