Corona Virus and Debt Dynamics in CEMAC region; Placing debt on a downward path

Synopsis: The Coronavirus (COVID-19) has caused a retrenchment in global economic activity, exacerbated by lockdowns that have disrupted sectors spanning tourism, manufacturing, and the energy sector. The abrupt increase in inflation outcomes and weaker currencies have exacerbated debt sustainability worries. The latter, driven by resource-backed loans, non-concessional and opaque concessional loans from multilateral institutions, development banks, and private investors. Placing debt on a sustainable trajectory consist