The paper finds a moderate evolution inpublic debt ratios since debt relief among heavily indebtedpoor countries (HIPC) and multilateral debt reliefinitiative (MDRI) recipient countries in Sub-Saharan Africa,with certain exceptions. For eight countries the authorsfind rapid rates of debt accumulation, which can return themto pre-HIPC debt levels in only a few years. Short-termdomestic debt has, despite early fears, in general notfilled the borrowing space created by debt relief. However,external debt accumulation on commercial terms in some casespresages repayment spikes, which may combine with short-termdomestic obligations to amplify refinancing risk and causeabrupt reductions in public spending, with damagingconsequences for development. Finally, despite reduced debt,African economies continue to be commodity dependent andprone to shocks. As global interest rates and commodityprices revert to historically more customary levels, thesecountries should remain prudent: avoid tax-base erosion,prevent large recurrent spending hikes, and invest wisely ingrowth, by executing projects effectively to enhanceinfrastructure. These fiscal fundamentals will be asimportant for debt sustainability as how much is borrowedand on which terms.
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