African Lenders Set Up Early-Warning Network on Debt Distress

The Alliance of African Multilateral Financial Institutions, a group of lenders known as the Africa Club, developed an initiative to proactively detect potential debt troubles among sovereign borrowers on the continent and avoid future disputes, its chairman said.

“We have come up with a program for early warning systems or early distress signals that allow us to provide support collectively to countries in distress to create instruments that would ameliorate stressful scenarios,” Samaila Zubairu, who is also chief executive officer of the Africa Finance Corp., said in an interview Thursday.