Debt rules must be rewritten to give African countries room to recover, expert says
Development expert Theo Jong says African countries need collective action to change the rules governing debt and restructuring. He argued that restructuring can clear debt and create room for new borrowing, while warning that the same cycle can continue without broader reform.
African countries need changes to the rules governing debt if they are to address recurring debt crises, development expert Theo Jong said in an interview with Premium Times Nigeria. Jong described the debt system as a set of rules and argued that countries should come together to rewrite them. In his view, this would make it possible to restructure debt when necessary.
He said restructuring could clear existing debt and create room for additional borrowing. At the same time, his comments recognised the risk that new debt could enter the system after a restructuring. The interview material does not identify the countries Jong was discussing, specify the reforms he proposes or give figures for current debt levels.
It also does not detail the role of lenders, governments or international institutions in any proposed changes. Jong’s central argument, as supplied, is that debt relief alone would not resolve the underlying problem. A change to the rules would be needed to make restructuring more effective and to address the cycle in which cleared debt is followed by further borrowing.
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