G20 adopts proposals on debt sustainability

Debt sustainability is a particularly prickly issue for many countries in Africa, which have complained of unfair treatment by credit ratings agencies, which price their debt at rates far higher than the rest of the world. Many African states are battling with historically unsustainable levels of debt, limited access to concessional lending, and an ever-widening developmental gap with the rest of the world.

Known as the 'African premium', the disproportionately higher interest costs are estimated by the United Nations Trade and Development (UNCTAD) as reaching about $75 billion annually, an amount that robs citizens of other developmental needs, whilst putting countries at high risk in the event of any future economic shocks.