Indexing government scandals one at a time
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 would have surpassed ¢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.
July 19, 2022
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