General Government

Debt dangers in Africa: how defaults hurt people, and why forgiveness isn’t the answer

Retrieved on: 
Monday, April 17, 2023

Public debt repayments in some African countries are at their highest levels since 1998. The Conversation Africa’s founding editor Caroline Southey talks to dean and economics professor Philippe Burger about the danger of debt problems some African countries face.What’s behind the spike in debt servicing repayments? For most countries experiencing new highs in debt servicing costs, it is not so much a spike, but rather a gradual increase over several years.

Key Points: 


Public debt repayments in some African countries are at their highest levels since 1998. The Conversation Africa’s founding editor Caroline Southey talks to dean and economics professor Philippe Burger about the danger of debt problems some African countries face.

What’s behind the spike in debt servicing repayments?

    • For most countries experiencing new highs in debt servicing costs, it is not so much a spike, but rather a gradual increase over several years.
    • For emerging market and developing economies the debt ratio increased from 33.5% in 2008 to 64.6% in 2022.
    • With higher debt comes higher debt servicing costs.
    • In Zambia the debt ratio was a mere 21.9% in 2007, but increased to 140.2% in 2020, when the government defaulted.

Ghana and Zambia have defaulted: what impact will this have?

    • Governments must then cut back significantly on their expenditure, often in the face of shrinking tax revenues.
    • If such a country must knock on the door of the IMF for assistance, as both Ghana and Zambia had to do, the institution usually prescribes several tough policy and economic adjustments.
    • The period leading up to a default is also often characterised by companies and households facing much higher inflation.

Which other African countries are on the watchlist: what stress signs should we be alive to?

    • Although economists sometimes use rules of thumb, such as a debt ratio that exceeds say 60% or 90%, the answer depends on several variables.
    • For instance, at 121.7%, the debt ratio of the US is much higher than that of Ghana.
    • Yet Ghana defaulted because the interest cost of its debt as percentage of GDP was much higher than that of the US (2.1% for the US).
    • Its debt ratio increased from 21.9% in 2007 to 140.2% in 2020, thus 6.4 times its 2007 level (see Table 1).
    • This also meant, as mentioned above, that its interest payments increased from 1.4% of GDP to 6% of GDP.
    • Two further countries that need to tighten up their fiscal policies are Rwanda and South Africa, which both saw their debt ratios almost triple between 2007 and 2022.

Is debt forgiveness a possible solution?

    • Two decades ago, domestic debt markets in low- and middle-income countries were underdeveloped, and their governments depended on access to international financial markets to finance their debt.
    • Debt forgiveness thus largely entailed foreign investors (often in advanced economies) taking a voluntary loss on their investments.
    • Forgiveness before default will therefore entail domestic investors taking voluntary losses on their investments to reduce the future tax liability that domestic debt implies for domestic taxpayers.
    • In addition, forgiveness may reduce the debt ratio, but it does not necessarily eradicate the initial mismatch between government revenue and expenditure that gave rise to the increasing debt ratio.

Take-aways

    • The data show that the increased interest burden that some African countries face results from years of steadily rising debt ratios.
    • And while Ghana and Zambia might have been the most serious cases, there are several other countries that can be placed on a “watch list”.

Montgomery County, Maryland Issues Proclamation Congratulating and Celebrating the 50th Anniversary of the U.S. Consumer Product Safety Commission

Retrieved on: 
Wednesday, October 26, 2022

WASHINGTON, Oct. 26, 2022 /PRNewswire/ -- On October 25, 2022, the County Council of Montgomery County, Maryland issued a proclamation recognizing the Consumer Product Safety Commission (CPSC) on its upcoming 50th anniversary.

Key Points: 
  • WASHINGTON, Oct. 26, 2022 /PRNewswire/ -- On October 25, 2022, the County Council of Montgomery County, Maryland issued a proclamation recognizing the Consumer Product Safety Commission (CPSC) on its upcoming 50th anniversary.
  • On October 27, 1972, the Consumer Product Safety Act was enacted into law and signed by President Richard M. Nixon.
  • "We take pride in calling Montgomery County our home base and look forward to being here for the next half-century."
  • "For half a century, the Consumer Product Safety Commission has provided a bulwark against hazardous products and corporate malfeasance that keeps the American people safe.

EQS-News: Helping Keep Elections Safe - This Company Is Working To Limit Security Risks Highlighted In Previous Elections

Retrieved on: 
Monday, October 17, 2022

Elections are considered the basis for democratic legitimacy, central to maintaining free and fair societies in countries across the world.

Key Points: 
  • Elections are considered the basis for democratic legitimacy, central to maintaining free and fair societies in countries across the world.
  • Appropriate election security to ensure that the processes involved are fair, resilient, and safe, is of paramount importance in maintaining public trust in the democratic function.
  • Election security covers all elements of election infrastructure including election officials, volunteers, state and local government bodies, voting equipment, vendors, and technology.
  • The 2016 and 2020 presidential elections in the U.S. saw many instances of cyber-attacks and suspected breaches.

4DMedical Lauds U.S. House of Representatives for Including Burn Pit Population Surveillance in FY 2023 Appropriations

Retrieved on: 
Friday, July 22, 2022

LOS ANGELES, July 22, 2022 /PRNewswire/ -- 4DMedical, the leading developer of functional imaging software for respiratory illness, today praised the U.S. House of Representatives for including language calling on the Department of Veterans Affairs to evaluate "emerging technology using existing x-ray imaging equipment to derive four-dimensional models of lung function" as part of the fiscal year 2023 Military Construction, Veterans Affairs, and Related Agencies appropriations bill.

Key Points: 
  • 8294, the Transportation, Housing and Urban Development, Agriculture, Rural Development, Energy and Water Development, Financial Services and General Government, Interior, Environment, Military Construction, and Veterans Affairs Appropriations Act of 2023.
  • "Four-dimensional scanning is one of those 'emerging technologies' available right now to help veterans suffering from respiratory illness," says Dr. Andreas Fouras, CEO of 4DMedical.
  • The use of new, effective screening technologies addressed in the appropriations bill will help serve the veterans population covered under the PACT Act.
  • 4DMedical technology is providing clinicians with greater insights into lung function and the impact of diseases and treatment interventions.

Maryland Tech Council Receives $2.45 Million in Federal Funds to Propel Tech & Life Sciences Innovation in Maryland With BioHub Maryland

Retrieved on: 
Monday, March 21, 2022

The Maryland Tech Council, the largest technology and life sciences trade association in the state, today announced it has received $2.45 million in federal funding to accelerate innovation in Maryland.

Key Points: 
  • The Maryland Tech Council, the largest technology and life sciences trade association in the state, today announced it has received $2.45 million in federal funding to accelerate innovation in Maryland.
  • The Maryland Tech Council plays an important role in growing our innovation economy and supporting a pipeline of talent for that work.
  • Maryland boasts one of the worlds strongest cultures for life sciences innovation and discovery, said Brad L. Stewart, Chair of the Maryland Tech Councils life sciences division, Maryland Life Sciences.
  • The vision for the Maryland Tech Council is to propel Maryland to become the number one innovation economy for life sciences and technology in the country.

American Land Title Association Applauds Senate Appropriations Committee for Elevating Real Estate Wire Fraud Issues

Retrieved on: 
Thursday, October 21, 2021

WASHINGTON, Oct. 21, 2021 /PRNewswire/ -- The American Land Title Association (ALTA), the national trade association of the land title insurance industry, today applauds the Senate Committee on Appropriations for elevating the issues of real estate wire fraud, business email compromise (BEC) and related scams in three of the Fiscal Year 2022 appropriations reports released this week.

Key Points: 
  • WASHINGTON, Oct. 21, 2021 /PRNewswire/ -- The American Land Title Association (ALTA), the national trade association of the land title insurance industry, today applauds the Senate Committee on Appropriations for elevating the issues of real estate wire fraud, business email compromise (BEC) and related scams in three of the Fiscal Year 2022 appropriations reports released this week.
  • For the third year in a row, ALTA successfully worked with the Senate Committee on Appropriations to push several federal agencies to focus more on real estate wire fraud and BEC scams as part of Congress' annual appropriations process.
  • "The American Land Title Association applauds the Senate Committee on Appropriations for bringing attention to real estate wire fraud, BEC and related scams, which have only compounded during the COVID-19 pandemic," said Diane Tomb, ALTA's chief executive officer.
  • The report for Transportation and Housing and Urban Development (HUD) reiterated HUD's requirements to brief the appropriations committee on efforts to educate consumers about real estate wire fraud.