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Ghana has approached the IMF 17 times since independence – that’s roughly once every four years on average. This time though, securing a bailout package from the multilateral lender was the easier part
Ghana has approached the IMF 17 times since independence – that’s roughly once every four years on average. This time though, securing a bailout package from the multilateral lender was the easier part.
Yet, Ghana’s leaders have to convince creditors to provide over US$22 billion in debt relief. A significant portion of Accra’s external debt is held by private lenders who want all their money back.
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https://trendsnafrica.com/oxfam-report-on-cocoa-farmers-in-ghana-depicts-skewed-income-patterns/
76% of Ghana’s external debt is held by commercial lenders including bondholders. Multilateral development banks also hold a significant portion of Ghana’s debt, followed by the Paris Club and China. To add to the woes, Ghana is also in default. This makes reaching an agreement on debt relief even harder. Bondholders are hesitant to give any concessions, not to mention the politicization of debt.
