Eurobonds have risen to prominence in Africa as a result of they’ve opened a window for governments to diversify their funding sources from conventional concessionary loans supplied by the Worldwide Financial Fund (IMF) and overseas assist, each of that are declining. As well as, multilateral loans have been turning into unpopular as a result of they set strict circumstances about austerity that are designed for governments to cut back spending. Up to now, 21 African international locations have issued Eurobonds price a mixed complete of an estimated US$155 billion on worldwide bond markets. Institutional traders from Europe and the US purchase these devices. Specialists on Africa’s sovereign debt, say the system isn’t working in favour of African international locations.
Supply: The Conversation
