Are banks in the hot seat?

In depth
This article is part of the dossier: Africa’s new debt deals

By Yara Rizk
Posted on Thursday, 16 June 2022 12:03

In a recent note, the IMF warns against the growing interdependence between banks and governments. According to the institution, this is a relationship that could sustain “a vicious circle” in these times of crisis.

This is part 5 of a 5-part series

To cope with the economic and social consequences of the pandemic, sub-Saharan states have become increasingly indebted to private creditors. These include private banks, such as Barclays in Mauritius and Botswana, Bank of Africa in Burkina Faso, BGFI Holding Corporation in Gabon, investment funds, and even commodity traders (Glencore in Chad).

‘Sovereign-bank link’

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