The International Monetary Fund has warned The financial body attributes the risk to heavy borrowing and gaping deficits despite overall economic growth. The assessment comes as African countries continue to tap international debt markets and issue record levels of debt in foreign currencies, spurred on by insatiable investor demand for yields.
According to the IMF's findings, African governments issued a record 7.5 billion dollars in sovereign bonds last year - which is 10 times more than in 2016 - and they plan to issue over $11 billion dollars in additional debt in the first half of 2018 alone.
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