Economic news

IMF: Ghana targets $10.5 billion of external debt service relief 2023-2026

2023.05.18 04:50


© Reuters. FILE PHOTO: The International Monetary Fund (IMF) logo in Washington, United States, September 4, 2018. REUTERS/Yuri Gripas

By Rachel Savage

JOHANNESBURG (Reuters) – Ghana’s debt restructuring is targeting $10.5 billion of external debt service relief from 2023 to 2026, the International Monetary Fund said late on Wednesday in its Debt Sustainability Analysis.

Ghana’s debt is currently unsustainable, but the country aims to restore it to a “moderate” risk of debt distress by 2028, the fund added.

The IMF’s executive board approved a $3 billion, three-year rescue loan on Wednesday, paving a potential path out of the worst economic crisis in a generation for the embattled West African country.

Ghana is overhauling its debt after its already strained finances buckled under the economic fallout from COVID-19 and Russia’s invasion of Ukraine. It is seeking external debt relief under the Group of 20’s Common Framework platform and completed a domestic debt exchange earlier this year.

Ghana has a $15 billion financing gap in its balance of payments from 2023 to 2026, the IMF said, with the World Bank set to provide $1.6 billion in budget and balance-of-payments support.

The country has a medium “debt carrying capacity”, which means the IMF requires Ghana to target bringing its public debt-to-GDP ratio from 88.1% at the end of 2022 to 55% by 2028.

“Domestic policy slippages represent a significant downside risk to the projections, further compounded by risks associated to the end-2024 general elections,” the IMF report said.

Other risks for Ghana include social unrest if economic conditions do not improve for the population, not regaining market access to issue debt and the domestic debt exchange posing dangers to domestic financial sector stability, the fund said.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 95,889.69 2.25%
ethereum
Ethereum (ETH) $ 3,305.53 3.65%
tether
Tether (USDT) $ 0.999886 0.28%
solana
Solana (SOL) $ 246.60 4.10%
bnb
BNB (BNB) $ 645.35 1.83%
xrp
XRP (XRP) $ 1.33 9.71%
dogecoin
Dogecoin (DOGE) $ 0.410094 4.65%
usd-coin
USDC (USDC) $ 0.999406 0.14%
cardano
Cardano (ADA) $ 0.962394 8.20%
staked-ether
Lido Staked Ether (STETH) $ 3,305.95 3.68%
tron
TRON (TRX) $ 0.203712 4.83%
avalanche-2
Avalanche (AVAX) $ 39.18 7.51%
the-open-network
Toncoin (TON) $ 6.04 7.33%
shiba-inu
Shiba Inu (SHIB) $ 0.000025 4.86%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,908.17 3.69%
stellar
Stellar (XLM) $ 0.467714 9.45%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 95,604.62 2.36%
polkadot
Polkadot (DOT) $ 8.36 3.26%
chainlink
Chainlink (LINK) $ 16.59 5.63%
bitcoin-cash
Bitcoin Cash (BCH) $ 500.54 1.89%
weth
WETH (WETH) $ 3,301.54 3.74%
sui
Sui (SUI) $ 3.28 5.61%
pepe
Pepe (PEPE) $ 0.000019 6.47%
leo-token
LEO Token (LEO) $ 8.56 0.87%
near
NEAR Protocol (NEAR) $ 6.36 2.89%
litecoin
Litecoin (LTC) $ 93.70 5.31%
aptos
Aptos (APT) $ 11.82 7.20%
uniswap
Uniswap (UNI) $ 10.33 5.61%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,477.21 3.66%
hedera-hashgraph
Hedera (HBAR) $ 0.139236 8.44%
usds
USDS (USDS) $ 1.00 0.04%
internet-computer
Internet Computer (ICP) $ 10.62 7.04%
crypto-com-chain
Cronos (CRO) $ 0.181982 7.13%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.533804 7.05%
ethereum-classic
Ethereum Classic (ETC) $ 27.54 7.59%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.41%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.47 4.75%
render-token
Render (RENDER) $ 7.40 5.83%
kaspa
Kaspa (KAS) $ 0.14812 5.78%
bittensor
Bittensor (TAO) $ 498.51 3.51%
whitebit
WhiteBIT Coin (WBT) $ 24.16 2.47%
dai
Dai (DAI) $ 0.999139 0.22%
bonk
Bonk (BONK) $ 0.000044 8.56%
arbitrum
Arbitrum (ARB) $ 0.813042 4.83%
mantra-dao
MANTRA (OM) $ 3.64 0.49%
celestia
Celestia (TIA) $ 7.66 8.78%
vechain
VeChain (VET) $ 0.040031 4.95%
filecoin
Filecoin (FIL) $ 5.35 1.75%
cosmos
Cosmos Hub (ATOM) $ 8.18 0.14%
okb
OKB (OKB) $ 52.82 3.72%