Ghana’s debt situation worsens as lenders continue to be bailed out

• IMF projections for debt, revenue and interest all over-optimistic • But public spending cut by more than initially planned • Debt crisis expected to continue for next twenty years, even if there is high economic growth Ghana is three years into its $1.1 billion IMF bailout programme, and debt indicators across the board are …

Ghana: A debt crisis rooted in colonialism

It’s been more than 60 years since Ghana achieved independence. But the economy shaped by colonialism faces a debt crisis and speculators continue to extract large profits from the country. Ghana is in a debt crisis. Despite having had significant amounts of debt cancelled a decade ago, the country is losing around 30% of government …

Ghana’s debt crisis worse than IMF expected, as lenders continue to profit

The IMF has completed the fourth review of its programme in Ghana, agreeing to disburse a further $95 million of loans, taking total loans to $565 million. The IMF has also agreed to extend loans for an additional year, from 2015-2019, rather than the original 2015-2018. These loans, which effectively pay the interest to previous …

Ghana@60: Independent and in debt

This short educational resource (12 pages) explains why Ghana is back in a debt crisis a decade after debt relief, and what options the country has now. A new debt crisis has begun to emerge across several of the world’s poorer economies, and Ghana is one country that has been particularly impacted. The crisis is global and comes from …

Ghana@60: The Debt Story – Building a collective response

There has been plenty in the news in recent months about Ghana’s struggles with debt. Having been hailed as a model economy by former US president Barack Obama, Ghana’s place as a leading example for what economic growth in Africa could look like has started to look shaky. We’re told much of this is down …

The fall and rise of Ghana’s debt: How a new debt trap has been set

Read the report (32 pages) or executive summary (4 pages). Independence Arch in Accra, capital of Ghana (Photo: Joe Ronzio/Flickr) Ghana is in a debt crisis. Having had significant amounts of debt cancelled a decade ago, the country is losing around 30% of government revenue in external debt payments each year. Ghana’s crisis is the result of …

World Bank broke its own rules over high-interest loans to Ghana

Lender accused of guaranteeing profits for speculators The World Bank has been accused of helping to fuel a new debt crisis in Ghana after it was revealed it has broken its own rules against lending to countries with high-risk debts. The Bank gave a $400 million guarantee to a high-interest private loan to the country, …

Ghana in talks with IMF as debt problems deepen

Ghana is to hold negotiations with the IMF in September on a new loan programme following a fall in the currency which has increased the level of debt payments. Under any programme the IMF is likely to require cuts in the civil service wage bill and removal of fuel subsidies. The West African country had …

Ghana debt payments on the rise

Payments could reach 30 per cent of government revenue in 2020s. Ghana has recently been judged by the IMF and World Bank to be at moderate risk of not being able to pay debts. The government’s foreign debt fell from $6 billion in 2005 (over 60 per cent of GDP) to $2 billion in 2006 …