DJIBOUTI’S DEBT TRAP
Article link https://adf-magazine.com/fr/2023/01/linflation-et-la-secheresse-forcent-djibouti-a-interrompre-le-remboursement-des-prets-chinois/?fbclid=IwAR2HMPkMv_af5W4PtYI3BNoUP64BKVUb5q8x7bXHbhKLwut-Q4X09g4TSaQ
Straddled with growing inflation and persistent drought, Djibouti is now the latest country to suspend repayment of its Chinese debt. Djibouti’s decision to pause reimbursement makes it the second African country after Zambia to adopt this measure. China is Djibouti’s biggest creditor and holds more than $1.4 billion in debt, or around 45% of the country’s gross national product (GDP), according to the International Monetary Fund.