Djibouti: Simulation of the debt burden and the cost of renegotiation [Djibouti : Simulation du poids de la dette et du coût d'une renégociation]
2020
If you are not a financier, policy-maker or expert at the IMF, it is very difficult to objectively appreciate the weight of a loan for a developing country and the consequences of the resulting indebtedness, as the available information is most often disparate, fragmentary or even contradictory. I have used the renegotiation of a loan extended by China to Djibouti in an attempt to provide a tangible illustration of the financial and budgetary implications of a debt and its rescheduling. It is this simulation I describe in this note.
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