Ghana’s Finance Minister, Ken Ofori-Atta, announced in a statement today, the “provisional” suspension of payment of part of its external debt, including Eurobonds and commercial term loans, as an interim emergency measure.
The suspension coincides with a $3 billion agreement made last week with the International Monetary Fund (IMF), to restructure the external debt and prevent further deterioration of the economic and social situation in Ghana.
The Finance Minister explained that the decision was taken because of the inadequate financial resources and international reserves of the Bank of Ghana and the collapse of the local currency by 50% due to inflation, while a few years ago Ghana was cited as an example in Africa in terms of high growth rate, but its economy has been impacted by the global Covid-19 pandemic.