
Audio By Carbonatix
African finance ministers started talks with private creditors to find a way to temporarily suspend debt payments without triggering defaults.
At least a dozen African finance ministers spoke during the hour-and-half virtual meeting with more than 100 creditors on Monday, according to a representative of private creditors who attended the gathering.
Both sides talked about mechanisms that would allow nations to suspend payments while guaranteeing their access to debt markets in the future, said the representative, who asked not to be named because the discussions were private. Both sides agreed to hold more meetings.
African countries are asking official and private creditors to temporarily suspend payments in order to channel resources to contain the coronavirus pandemic. The virus threatens to overwhelm the health system of a continent that is home to two-thirds of the world’s poor.
While official creditors have agreed to halt payments this year on about $20 billion of obligations, getting private investors to join the initiative is proving more difficult due to legal and financial complexities.
Vera Songwe, the head of the United Nations Economic Commission for Africa, participated in the meeting, the person said. The African Union’s special envoy Tidjane Thiam, chaired the discussion, according to a statement by UNECA and the Washington-based Institute of International Finance.
“A one-size-fits-all solution may not apply in light of country specific characteristics,” they said in a joint statement. “Communication to and from all stakeholders needs to be well managed so as not to cause an unnecessary disruption in the crucial flow of private capital.”
Latest Stories
-
AMA confirms trading will be banned on Kaneshie footbridge after rehabilitation
8 minutes -
IMANI flags procurement concerns in state insurance placements
13 minutes -
Mahama’s push for visa-free Africa reflects Nkrumah’s Pan-African vision – Rashid Tanko-Computer
37 minutes -
Redefining sweetness: Why our celebrations must heal, not harm
38 minutes -
IMANI urges Mahama to reaffirm his 2014 directive on competitive state insurance placements
39 minutes -
Maiden Katon Praise comes off at Accra Sports Stadium on April 17
51 minutes -
Families flock to Luv FM Easter party at Rattray park in Kumasi
1 hour -
Rural health worker laments overwhelming burden at CHPS compounds
1 hour -
Katon Meet to stream Accra stadium Katon Praise Concert worldwide
1 hour -
Gov’t considers exploring local raw materials to stabilise production costs of sachet water prices
2 hours -
Mahama in Paris: Turning Diplomacy into Delivery
2 hours -
Middle East crisis shows Ghana needs to diversify energy sources – Energy expert
2 hours -
Government of Ghana Internal Revenue Generation cannot fund Big Push in Four Years
3 hours -
EPCG Moderator urges leaders to serve with courage and humility in Easter message
3 hours -
The Cobra at the gate: When good intentions overrun the system
3 hours