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Significance
Chinese creditors now look set to waive debt payments due between May 2020 and June 2021, when the G20's Debt Service Suspension Initiative (DSSI) currently expires, although Chinese state-owned policy banks intend to restructure loans on their own terms.
Impacts
The DSSI may now be more attractive to Ghana and Kenya, but both may hold out, preferring to issue Eurobonds over accepting IMF scrutiny.
The World Bank will put China and its debtors under increasing pressure to report transparently, fuelling tensions.
The Framework’s longer repayment period will spread costs, easing debt pressures for some but simply deferring risks for others.
Keywords:
Financial services,
Africa,
AF,
G20,
China,
Congo-Brazzaville,
Ghana,
Ivory Coast,
Kenya,
Mozambique,
Rwanda,
Senegal,
Tanzania,
United States,
Zambia,
economy,
international relations,
politics,
social,
aid,
banking,
debt,
finance,
fiscal,
foreign policy,
policy,
private sector,
talks
© Oxford Analytica 2020. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2020
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