Reuters: Ghana to default on most external debt as economic crisis worsens
ACCRA (Reuters) - Ghana on Monday suspended payments on most of its external debt, effectively defaulting as the country struggles to plug its cavernous balance of payments deficit.
Its finance ministry said it will not service debts including its Eurobonds, commercial loans and most bilateral loans, calling the decision an "interim emergency measure", while some bondholders criticised a lack of clarity in the decision.
The government "stands ready to engage in discussions with all of its external creditors to make Ghana's debt sustainable", the finance ministry said.
The suspension of debt payments reflects the parlous state of the economy, which had led the government last week to reach a $3-billion staff-level agreement with the International Monetary Fund (IMF).
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Update #1: Ghana suspends payment of most external debts (Al Jazeera)
Update #2: Ghana to default on most international debt (RFI)
WNU Editor: I am old enough to remember when Ghana (in the 1980s - 2000) was one of Africa's economic shining lights.
3 comments:
I would wager that at least half of the money borrowed by Ghana is now deposited in the overseas bank accounts of senior officials.
IMF debt trap.
I recall it as being OK also. Times change, not always for the better. Tyical African corruption. Continent is hopeless, look at what South Africa turn into in 25 years.
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