GHANA: WEIGHING DEBT SUSTAINABILITY VERSUS DOMESTIC DEBT RESTRUCTURING

   Wed, 26 October 2022

To accelerate its talks with the IMF on a bailout programme, Ghana’s government can either implement politically unpalatable debt sustainability measures or seek a restructuring of its domestic bonds that would severely pressure the local banking sector. The IMF may insist on both conditions to be completed before disbursements begin early next year, while a failure to do so would rush Ghana into a seemingly inevitable default scenario by 2024, unless the sovereign can regain access to international bond markets which is a highly improbable scenario in the medium term.

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