Tuesday, May 12, 2020

Africa Debt, China, and COVID-19

The World Economic Forum published on 12 May 2020 an analysis titled "How COVID-19 Will Change China and Africa's Economic Relationship" by Lauren Johnston, SOAS China Institute.

China normally renegotiates loans bilaterally and usually extends the repayment period while eschewing debt cancellation except in the case of interest free loans to the poorest countries. The author argues that debt write-off may be necessary if both China and Africa want to benefit from the post-coronavirus global economy.