OECD creates African centre for the management of sovereign debt

Jun 07, 2011

The Organisation for Economic Co-operation and Development will open the first African centre for the management of sovereign debt in South Africa.

This announcement was made in Paris on May 25th by an OECD official, following the signing of the agreement by OECD Secretary-General Angel Gurría and South African Finance Minister Pravin Gordhan, Les Afriques newspaper reports. It will be operational as of June 30th 2011 with the main objective of helping African governments manage their debt and bond markets. The centre will also create a government database to monitor and analyse debt and sovereign risk in Africa.Furthermore, it will conduct regular research and monitor bond market developments. According to Angel Gurria, quoted by Xinhua news agency, the establishment will "help reduce the cost of managing public debt and encourage the development of financial sector products including mortgage loans, micro-credit and financing for small and medium-sized firms, ultimately supporting Africa's development".