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Bono-Led Relief No Cure As Ghana, Zambia Consider Imf Aid

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http://www.bloomberg.com/news/2014-07-16/bono-led-relief-no-cure-as-ghana-joins-zambia-seeking-imf-aid.html

Less than a decade after Ghana and Zambia had most of their debt written off, the two nations are struggling to finance their budgets and are under pressure to seek emergency loans from the International Monetary Fund.

Government spending in Ghana and Zambia has been growing at what the IMF considers unsustainable levels, both countries had their debt ratings downgraded in the past year and their currencies were the worst performers in Africa against the dollar in the first half of the year.

Prompted by a global debt relief campaign led by the likes of Irish rock singer Bono, Ghana and Zambia were cleared since 2005 of debt of about $14 billion owed to the IMF, World Bank and other global lenders. Since then, both countries have racked up borrowing, including selling their first dollar bonds to tap rising demand from foreign investors searching for high-yielding debt. As the funds flowed in, spending curbs weakened.

“There’s no question that Ghana and Zambia misbehaved badly during the boom years,” Nicholas Spiro, managing director of Spiro Sovereign Strategy in London, said in an e-mailed response to questions. “They were among the naughtiest pupils in the class and they’re now suffering the consequences.”

An excellent achievement 10 years after having the debt cleared they are now in the same position and need a bailout.

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Would guess the people in charge went all out to make a quick buck at the expense of the rest of the country?

You definitely wouldn't get developed nations behaving like that...

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Would guess the people in charge went all out to make a quick buck at the expense of the rest of the country?

You definitely wouldn't get developed nations behaving like that...

No way. Osborne and Carney draw their inspiration from South America not Central Africa...

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http://www.bloomberg.com/news/2014-07-16/bono-led-relief-no-cure-as-ghana-joins-zambia-seeking-imf-aid.html

An excellent achievement 10 years after having the debt cleared they are now in the same position and need a bailout.

It's almost as if abolishing capital controls and deregulating capital markets may have downsides, especially in countries with dubious governance.

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“There’s no question that Ghana and Zambia misbehaved badly during the boom years,” Nicholas Spiro, managing director of Spiro Sovereign Strategy in London, said in an e-mailed response to questions. “They were among the naughtiest pupils in the class and they’re now suffering the consequences.”

..without any sense of irony at all

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This is an interesting view. How 'Africa supports the world'

http://thinkafricapress.com/development/who-aids-whom-exposing-truth-africa-192-billion-losses#.U8fGflqbZAI.twitter

I'm sure the money isn't going into UK tax havens though.

However, Africa is not poor, though its people are being kept in poverty by a combination of inequitable policies, huge disparities in power, and criminal activities perpetuated and sustained by wealthy elites, both inside and outside the continent.

Sounds like here! :lol:

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The average African isn't weighed down by debt whereas the average Brit is sinking under it especially if they're buying a house.

So who is better off?

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The average African isn't weighed down by debt whereas the average Brit is sinking under it especially if they're buying a house.

So who is better off?

Quite right. Individually, African people probably have more net worth than most Europeans. In Africa most transact off book, through hard experience they know to avoid interacting with their govts.

this book explains the back story

https://archive.org/details/ConfessionsOfAnEconomicHitman_257

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