Another Africa-related article from The Economist.
This article should mention the most recent case of Tanzania: no rating, 600 bps spread, variable rate, and 3-year grace.
Sure frontier countries benefit from a flood of "search for yield" but once again let's go back to basics:
(i) the borrower country is most advised to do all the homework; and
(ii) investors should understand that a debt restructuring (a la CIV) is a real possibility.
I know this statement is extremely boring but it is time to remind ourselves of this boring statement, because the history repeats itself so many times.
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