Home / GENERAL NEWS / Ghana Announces External Debt Payment Suspension, Slipping Into Default

Ghana Announces External Debt Payment Suspension, Slipping Into Default

Spread the love

Ghana’s finance ministry said on Monday it was suspending debt service payments on certain categories of external debt including Eurobonds, commercial loans and most bilateral debt, amid the worst economic crisis in a generation.

 

Ghana had already announced a domestic debt exchange programme and on Tuesday said it had reached a $3 billion staff-level agreement with the International Monetary Fund. The IMF has said a comprehensive debt restructuring is a condition of the deal.

 

See also  Special Prosecutor And His Staff Are Yet To Receive Salary After 16 Months In Office

The west African cocoa, oil and gold producer was previously seen as a rising star among emerging economies, but is now struggling with soaring debt costs. Public debt stood at GHS467.4 billion ($55 billion) in September, according to the most recent central bank figures, 42% of which was domestic.

 

The government “stands ready to engage in discussions with all of its external creditors to make Ghana’s debt sustainable”, the finance ministry said in the statement.

 

Ghana’s external bonds, which are trading at a deeply distressed level of 31-37 cents in the dollar, slipped with the 2051 bond losing 0.4 cents, Tradeweb data showed.

See also  Ken Ofori-Atta Is Africa’s Most Innovative Finance Minister – Chief Economist Correspondent For Africa

 

Ghana’s annual inflation was above 50% in November and the government has said it is spending between 70 and 100% of revenue on interest payments.

 

($1 = 8.5000 Ghanaian cedi)

Reporting by Christian Akorlie and Cooper Inveen, Writing by Rachel Savage, Editing by Karin Strohecker and Ed Osmond

 

 

 

Thanks for reading from MyGhanaMedia.com as a news publishing website from Ghana.

 

Source:  MyGhanaMedia.com

 

Disclaimer: MyGhanaMedia.com is not responsible for this report and its content.
There are four types of content published on   MyGhanaMedia.com daily: curated content; syndicated content; user-generated content; and original content.

 

See also  Video: Agradaa Denounces ‘Sika Gari’ To Take Up New Role As Evangelist

 

 

 

 

 

 

 

 

 

 

Send your news stories to my[email protected] and Chat with us via WhatsApp on +233 200818719

 

 

About Adwenpa-Hene

I'm Adwenpa-Hene |Blogger & Broadcaster Journalist. I am the CEO and manager of this noble website. I publish on Entertainment, Sports, Politics, Lifestyle, and Technology. You can also follow Us on : YouTube Channel - My Ghana Media TV, Facebook - MyghanaMedia TV , Twitter - @MyGhanamedia2 & Instagram - My Ghana Media TV. Email Address: [email protected] Contact Us: 0200818719

Check Also

“No Man Born Of A Woman Can Beat Dr Bawumia In The NPP Presidential Elections” – Nana Obiri Boahene

Spread the love The former deputy general secretary for the New Patriotic Party, Nana Obiri …

Leave a Reply

Your email address will not be published. Required fields are marked *