IMF warns Ghana could face debt distress

June 15, 2017 12:40 pm

The International Monetary Fund has warned that Ghana is at a high risk of debt distress. That warning comes as the West African nation plans to clear arrears owed by energy utilities through selling its 2 point 3 billion dollar local-currency bond. However, the IMF insists that decision will only increase the stock of government debt. But Ghana is confident that it will do no harm, as long as it’s issued through a special purpose vehicle and serviced by energy sector levies. Ghana is also trying to renegotiate the terms of a three-year bail out from the IMF, valued at 918 million dollars. At the end of 2016, Ghana’s debt went up to 73 percent of gross domestic product.

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