RESOLVING THE DEBT SUSTAINABILITY ISSUES FROM A LEGAL AND INSTITUTIONAL PERSPECTIVE: A FOCUS ON EAST AFRICA

Abstract

This paper examines debt sustainability in eastern Africa. Four objectives guide the investigation focused on these countries. First, to carry out a situation analysis of debt sustainability. Second, to review the legal and institutional perspectives which promote debt sustainability. Third, to assess public debt composition, and fourth, to review the measures that have been undertaken to enhance public debt sustainability. Generally, the argument is made that public debt is sustainable in Uganda, Kenya, Tanzania and Rwanda. But these countries are exposed to risks such as foreign exchange, refinancing risks and liquidly risks, which may negatively impact on their debt sustainability.