Home / BUSINESS NEWS / Report: Ghana Ranked 2nd On The List Of Countries With Highest Debt Default Risk In 2022

Report: Ghana Ranked 2nd On The List Of Countries With Highest Debt Default Risk In 2022

Spread the love

A Bloomberg study has ranked Ghana 2nd among countries with the highest debt default risk in 2022.

The country closely follows El Salvador (ranked number one) in the Sovereign Debt Vulnerability Ranking.

 

Ghana’s debt to Gross Domestic Product (GDP), according to Bloomberg, is estimated at 84.6% by the end of this year.

This indicates that the nation’s debt will have surpass ¢400 billion by far before the end of 2022.

 

As of the first quarter of 2021, Ghana’s public debt had hit ¢391 billion (US$50.3 billion), the Bank of Ghana reported. As much as ¢40.1 billion was added to the debt stock, largely as a result of exchange rate fluctuation.

 

Together with Brazil, Ghana’s interest expense to GDP is projected to hit 7.2% in 2022, the highest among the 25 countries, captured by Bloomberg.
Ghana ranked 2nd by Bloomberg with highest debt default risk in 2022

This means the two countries will spend more money to service their debt in 2022.

 

 

Already, the International Monetary Fund has cautioned that more than 30% of emerging and developing countries are at or near debt distress, with 60% from developing economies.

According to Bloomberg, Tunisia with a debt-to-GDP ratio of 87.3% is ranked 3rd among countries that are in the risk of debt default.

It is followed by Pakistan (4th), Egypt (5th), Kenya (6th), Argentina (7th), Ukraine (8th), Bahrain (9th) and Namibia (10th).

Ghana’s situation prior to announcement by the government to seek IMF bailout was precarious as investors had perceived the Ghanaian economy as risky, therefore escalating the yield on Ghana’s Eurobonds.

 

 

However, since the announcement by the government to seek economic support from the Fund, calm has returned to the markets as interest rates have remained relatively stable, though there are still some concerns about the foreign exchange market.

 

 

May be an image of text that says 'Countries with the Highest Default Risk in 2022 SovereignDebt overnment ElSalvador Dfau Ghana Tunisia 3.376 31.8% 17.1% 32.1% 2,071 Egypt 82.6% 1,200 16.8% 13.2% 84.6% 3.0% 1,492 Argentina 87.3% 4.8% 14.6% Ukraine 71.3% 8.2% 1,134 20.7% Bahrain 94.0% 4,470 60.4% Namibia 70.3% 1.7% 10,856 6.6% Brazil 74.3% 2.9% Angola 49.0% Senegal 6.0% 12.0% 116.5% Rwanda 69.6% 834 10.2% SouthAfrica 7.2% 4.0% 91.9% CostaRica 7.9% Gabon 75.3% 2.1% 2.5% 4.7% 5.2% 72.0% Ecuador 70.2% Turkey Dominican 69.4% 57.4% 13.3% 10.1% Ethiopia 77.1% Colombia 33.9% 62.2% 43.7% Nigeria 3.035 Mexico 59.4% 48.3% 2.9% 60.6% 37.4% 58.4%'

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Master Of Ceremony (M.C) available for all your events.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source:  MyGhanaMedia.com

 

 

 

 

There are four types of content published on MyGhanaMedia.com daily: curated content; syndicated content; user-generated content; and original content.

Image


Send your news stories to myghanamedia@gmail.com and Chat with us via WhatsApp on +233 200818719

 

About Adwenpa-Hene

we 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: myghanamedia@gmail.com Contact Us: 0200818719

Check Also

EC Announces NPP’s Patrick Boakye Yiadom As Winner Of Obuasi East Parliamentary Election

Spread the love The re-collation of parliamentary election results for the Obuasi East constituency has …

x