Botswana’s debt could peak at 40% of GDP raising concerns that the country may soon run past a fiscal red light according to Moody’s Investors Service projections.
The 40% ceiling is a benchmark used by international agencies such as the World Bank to indicate that the country’s debt level is sustainable.
The global rating agency recently downgraded Botswana’s long-term domestic and foreign currency issuer ratings from A3 to Baa1, maintaining a negative outlook and the result is that this could peak at of 40% of GDP, something which some media reports initially missed as a key warning.
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