East Africa: Walking a Tightrope Between Giving Service and Loan Repayments

East Africa's finance ministers are walking a tightrope in their quest to finance recurrent government operations and keep major infrastructure projects on course amid falling tax revenues that have weakened key debt sustainability indicators.

The region's debt service-to-total revenue ratios are coming under increasing pressure as governments struggle to achieve tax targets and the window for concessional loans narrows.

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