• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Despite a $3 billion bailout, Ghana has essentially gone bankrupt

2 years ago
in Business, Economy, Features, highlights, Home, home-news, latest News, Markets
1 min read
0 0
0
172
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

RelatedPosts

GRA Says Cedi Rebound Cuts Government Revenues by 30%

Here’s Why Uber’s CEO Believes China is Winning the EV Race

Appiah Adomako Writes: Ghana Needs a Surgical Approach to Minimum Investment Capital Requirement

Despite a $3 billion bailout, Ghana has essentially gone bankrupt

The Ghanaian government has filed for bankruptcy after failing to pay billions of dollars it owed to international creditors in December.

According to a report by The New York Times, President Nana Akufo-Addo’s administration “had no choice but to agree to a $3 billion loan from the lender of last resort, the International Monetary Fund,” which helped to explain Ghana’s financial crisis, in which government organisations owed billions to contractors and were in serious debt.

The media outlet noted that the financial crisis has had far-reaching effects, with many contractors laying off workers, exacerbating the country’s unemployment problem.

Emmanuel Cherry, the chief executive of an association of Ghanaian construction companies, recently disclosed that government back payments to contractors amounted to a staggering 15 billion cedis, or roughly $1.3 billion, before interest.

The reports also disclosed that the Ghanaian government owes independent power producers $1.58 billion and is in danger of experiencing widespread blackouts.

“The government is essentially bankrupt. It was the 17th time Ghana has been compelled to turn to the fund since it gained independence in 1957. This latest crisis was partly prompted by the havoc of the coronavirus pandemic, Russia’s invasion of Ukraine, and higher food and fuel prices,” the report read in parts.

The IMF presented a comprehensive rescue plan to address Ghana’s debt, reining spending, increasing revenue, and protecting the most vulnerable populations while negotiating with foreign creditors.

The issue would be a significant topic of discussion at the upcoming United Nations General Assembly. The growing debt load for developing nations, estimated to exceed $200 billion, would also be another major topic of discussion.

The report noted that the recent IMF loan helped stabilise the economy by reducing currency swings and boosting confidence. Even with inflation still around 40%, it has decreased from its peak of 54% in January.

In May, Ghana’s president relayed that the $3 billion (£2.4 billion) IMF bailout would not instantly solve the nation’s economic problems.

IMF’s program addresses important concerns, but Tsidi Tsikata, a senior fellow at the African Center for Economic Transformation in Accra, who was quoted in the study, questioned if Ghana would be able to avoid experiencing similar financial difficulties.

Source: business insider africa
Via: norvanreports
Tags: bankruptDespite a $3 billion bailoutghanaGhana has essentially gone bankrupt
No Result
View All Result

Highlights

Serie A: Jonathan David Shines on Serie A Debut as Juventus Overcomes Parma

La Liga: Mbappe, Vini Jnr on Target as Real Madrid Beat Real Oviedo

Gold Fields CEO Flags Illegal Mining; Backs Ghana’s Push for Fairer Mining Returns but Stresses Investor Appeal

MTN Ghana to Offload GHS 2.83 Million Worth of Shares on the Open Market

CSO Budget Forum Calls for Urgent Reforms in Tax Compliance in Ghana

Government Misses T-Bill Target, Raises GHS 5.75bn at Higher Yields

Trending

A customer counts Ghana cedi banknotes at the Nima market in Accra, Ghana on Monday, March 11, 2024
Business

GRA Says Cedi Rebound Cuts Government Revenues by 30%

August 25, 2025

GRA Says Cedi Rebound Cuts Government Revenues by 30% The sharp recovery of the cedi has dealt...

Here’s Why Uber’s CEO Believes China is Winning the EV Race

August 25, 2025

Appiah Adomako Writes: Ghana Needs a Surgical Approach to Minimum Investment Capital Requirement

August 25, 2025

Serie A: Jonathan David Shines on Serie A Debut as Juventus Overcomes Parma

August 25, 2025

La Liga: Mbappe, Vini Jnr on Target as Real Madrid Beat Real Oviedo

August 25, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.