African Eurobond issuers face more scrutiny in the wake of questions about the true extent of the debt loads of Zambia and the Republic of Congo.
Few investors expect the situation in either nation to be as bad as that of Mozambique, where the discovery of hidden loans two years ago triggered a financial crisis and sovereign default. Still, several are querying whether their external liabilities are greater than public figures suggest. Zambia denied on Friday it is hiding debt and showed budget documents detailing borrowing. The Republic of Congo also said it’s not concealing debt.