North Africa's foreign debts exceed $ 114 billion

The foreign debt contracted by North African countries stands at $ 114 billion, i.e 24 fold more than in 1970, according to estimates by the Economic Commission for Africa (ECA).

A study by the ECA on the management of debt, investment and trade in North Africa (Algeria, Egypt, Libya, Mauritania, Morocco, Sudan and Tunisia) that was presented to a seminar held in the Moroccan northern city of Tangier disclosed that North Africa was particularly indebted, despite the stabilization of this debt since 1995.

The debt servicing which was also stabilized since 1995 stands at around $ 11 and 12 billion.

According to the study, in 1997, Algeria's debt was assessed at $ 30.92 billion, Egypt's at $ 29.84 billion, Libya's at 3.85 billion, Mauritania's at 2.45 billion, Morocco's at 19.32 billion, Sudan's at 16.32 and Tunisia's at 11.32 billion.

The study shows that North Africa holds 37 % of the volume of the debt of all Africa and 47 % of the debt servicing in the continent and that the debt burden for some countries such as Sudan and Mauritania is unbearable.

To cope with the situation, the study calls for a better management of the debt through new management methods and adequate strategies. It equally calls on the concerned countries to adopt sound macro-economic policies, and sound management of the internal debt, to struggle against capital drain, to take into account the new regulations of the international finance, to secure fiscal transparency and above all to hold a constructive dialogue with the international donors in order to alleviate the debt burden which cripples the development of North African countries.

The Tangier seminar that is sponsored by the sub-regional development center for North Africa, is discussing the management of foreign debt, the relationship between debts and investments in North Africa and trade flows in the region.