Ghana has been listed among a dozen developing nations facing a looming debt crisis amid the general economic downturn.
Other countries in the list of 12 nations at risk of debt default included: Ukraine, Nigeria, Kenya, Tunisia, Belarus, El Salvador, Egypt, Ethiopia, Argentina and Ecuador.
According to a Reuters report, factors that occasioned Ghana’s specific crisis rest on among others massive borrowing, rising inflation, a slumping currency and soaring debt to Gross Domestic Product, GDP, ratio.
“Furious borrowing has seen Ghana’s debt-to-GDP ratio soar to almost 85%.
“Its currency, the cedi, has lost nearly a quarter of its value this year and it was already spending over half of the tax revenues on debt interest payments. Inflation is also getting close to 30%,” the report noted.
The report cited Lebanon, Sri Lanka, Russia, Suriname and Zambia as nations already in default, Belarus, it added was “on the brink and at least another dozen are in the danger zone as rising borrowing costs, inflation and debt all stoke fears of economic collapse.”
It stated that countries that are looking to avert an economic collapse were among others looking to the International Monetary Fund, for rescue programmes.
Ghana is currently in talks with the IMF for one such programme after the government.