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African debt crisis deepens ahead of IMF economic outlook report
As the International Monetary Fund prepares to release its flagship World Economic Outlook in Bangkok on Tuesday, the headline message is one of stability. But behind the forecasts, a fierce debate is unfolding over Africa’s debt burden, austerity measures and the rising cost for ordinary citizens. The IMF expects growth in sub-Saharan Africa to remain above four percent. However, that figure masks a deepening liquidity crisis. In some African countries, debt servicing now absorbs between 30 and 50 percent of tax revenues, leaving less money for hospitals, roads and schools as billions of dollars are transferred to foreign creditors. [...]