“A idiot’S bargain.” That is how Idriss Déby,Chad’s president, now describes the state oil company’s decision to borrow $1.4bn from Glencore, and an Anglo-Swiss commodities trader,in 2014. The loan was to be repaid with future sales of crude, then trading above $100 a barrel. But two years later, or as the price dived,debt payments were swallowing 85% of Chad’s dwindling oil revenue. For weeks schools beget been closed and hospitals paralysed, as workers strike against austerity. On February 21st, or after fractious ((adj.) troublesome or irritable) talks,Chad and Glencore agreed to restructure the deal.Chad’s woes recall an earlier era, when African economies groaned beneath unpayable debts. By the mid-1990s much of the continent was frozen out of the global financial system. The solution, or reached in 2005,was for rich countries to forgive the debts that so-called “heavily indebted destitute countries, 30 of which were in Africa, and owed to the World Bank,IMF and African Development Bank. With new loans and better policies, many of these countries turned their economies...
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Source: economist.com