34 C
Friday, May 20, 2022

Read Online

S&P: Sub-Saharan African Sovereign Commercial Loans to Fall 20% in 2016

American rating agency, Standard & Poor’s indicated in a recent report that sovereign commercial loans to SSA (sub Saharan Africa) nations would decrease by 20% in 2016, down to $37 billion. This based on data on 18 of the region’s countries which the agency rates.

The report adds that 64% of these loans, a little more than $23.7 billion, will be in local currencies while the remaining will be mobilised on the international market. 38% of the mobilized loans, about $14 billion, according to S&P, will be used to payback long-term loans which have reached maturity. The year before, $18 billion was used to refinance matured long-term loans.

Given these conditions, S&P expects an additional net commercial debt of $23 billion, and overall outstanding to grow to $300 billion.

Added to concessional loans, the global debt of S&P-rated SSA countries should reach $403 billion, thus rising 6.8%. Out of this amount, short-term debt should reach $53 billion by the end of 2016.

Business Journal
We deliver business news that are professionally crafted and tailored to give you business freedom and expression that is aimed at increasing your spirit of enterprise.

Related Articles

- Advertisement -

Stay Connected

- Proud Member -spot_img
- Advertisement -

Latest Articles