Ghanaian Finance Minister Ken Ofori-Atta addressing the country's recent default on its foreign debt obligations in a Facebook Live video on December 19, 2022.
Ghana announced it will suspend payments on most of its debt to bondholders, other commercial lenders, and foreign governments, officially putting it in default. The announcement comes a week after a staff-level meeting with the IMF and a ratings downgrade. Ghana’s economy is spiraling, with 70%-100% of government revenue going to debt servicing and domestic inflation hitting 50%, triggering protests.
Out of its $28.4 billion external debt, $1.9 billion is owed to China, only about 6.7%. In contrast, Eurobond debt makes up 46.1% ($13.1 billion.) Bondholders said the relatively small share of Chinese debt will likely smooth the debt restructuring process, in contrast to countries like Zambia.
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Chinese Premier Li Keqiang told the head of the International Monetary Fund that China is open to participating “in a constructive manner” with debt restructuring efforts. During a call with IMF Managing Director Kristalina ...
China’s commitment to supporting Sri Lanka’s debt restructuring in line with other bilateral creditors is a major step towards securing a rescue package from the International Monetary Fund. However, it’s still unclear how negotiations will ...
This week saw yet another African leader (this time my own president, Cyril Ramaphosa,) calling for international measures to soften the current debt crisis confronting poor countries in Africa and beyond. None of ...
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