LOOMING EXTERNAL DEBT CRISIS IN SUB–SAHARA AFRICA: THE WAY FORWARD

Agbo, Elias Igwebuike and NWADIALOR, E.O (2020) LOOMING EXTERNAL DEBT CRISIS IN SUB–SAHARA AFRICA: THE WAY FORWARD. Advance Journal of Management, Accounting and Finance, 4 (5). pp. 1-26. ISSN 2364 – 4219

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Abstract

Anxiety has been increasing concerning the on-coming external debt crisis in Sub-Saharan African countries. When a similar incident occurred in the 1990s, the Paris Club and other multilaterals adopted the Multilateral Debt Relief Initiative aimed at writing off the debt owed by a group of low-income poor countries the majority of which were African. Despite the fact that that massive debt relief was conditioned on sound economic management and poverty reduction strategies, the Sub-Sahara African region is once again facing a massive debt crisis. The cardinal aim of this paper is to review the external indebtedness of Sub –Sahara African countries, particularly Nigeria, using the content analysis research design. Specifically the study seeks to examine the genesis and history of external debt in the Sub –Sahara African countries, the current external debt status of Nigeria, the drivers of external debt crisis and their consequences. This study observes that, among others, the major drivers of external debt rise in the region include the negative valuation effects associated with exchange rate depreciations, increase in the cost of debt financing in a number of countries which has led to enhanced interest payments and lack of fiscal discipline. This observation suggests that Sub�Sahara African countries should adopt and promote prudent macroeconomic principles for them to be capable of to reducing and managing rising debt servicing costs closely.

Item Type:	Article
Subjects:	H Social Sciences > HG Finance
Divisions:	Faculty of Management and Social Sciences
Depositing User:	mrs chioma hannah
Date Deposited:	04 Oct 2021 09:46
Last Modified:	04 Oct 2021 09:46
URI:	http://eprints.gouni.edu.ng/id/eprint/3192

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