• 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 Economy

Ghana to struggle with debt service burden in 2023

3 years ago
in Economy, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
120
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Ghana to struggle with debt service burden in 2023

Ghana, along with six other African countries will struggle with debt service burden in 2023, says the Economist  Intelligence Unit (EIU).

According to the EIU, debt service payments burden will consume a substantial share of tax revenue in 2023.

Per the report, Tunisia, Egypt, Congo-Brazzaville, Zambia, Zimbabwe and Mozambique are the other six countries anticipated to struggle with debt service burden next year.

In its Africa Outlook 2023 Report, the EIU said the public-sector debt/GDP ratio will remain above 60% for Africa in 2022 and 2023 and some African countries will far exceed this level.

“The need to service and roll over large amounts of debt at a time when domestic and international borrowing costs are on the rise will weigh heavily on some countries in 2023 and things could get even more painful in 2024 when more capital repayments fall due”, it mentioned.

“African governments have ramped up their borrowing—domestically and internationally —  and public sector debt ratios (relative to GDP) have pushed back towards the highs, last seen in the early 2000s just before the enormous debt restructuring of 2005, implemented under the umbrella of the heavily indebted poor countries (HIPC) initiative”, it added.

RelatedPosts

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

The EIU also said more African states will head towards external debt distress in 2023 and 2024.

“African states are required to repay about US$75bn of external borrowing (medium- and long-term capital repayments that fall due) in 2023 and a similar amount in 2024. Foreign creditors have offered pandemic-related debt relief and relatively low—by historical standards—interest rates in recent years, but these lines of international financial support have come to an end”.

It further said the debt-servicing burden will become more painful because of higher interest rates, weaker currencies against the US dollar and softer capital inflows, while rolling over existing debt or accruing new debt will become much more of a challenge.

Already, it added many African states have found it difficult to issue new Eurobonds in 2022 and yields in secondary markets—which indicate where future refinancing costs are headed—have risen sharply.

“A widespread external debt crisis across the continent seems unlikely, but some highly leveraged states will face acute financing difficulties and a very uncertain period”, it noted.

Government suspends payments of external debts  

Meanwhile, Ghana’s Finance Chief Ken Ofori-Atta, has announced the suspension of payment on selected external debts including payment on Ghana’s Eurobonds, commercial term loans, and bilateral debt.

The decision by the Finance Ministry to suspend payments of the country’s external debts, it notes in a statement issued on Monday, December 1, 2022, forms part of  “additional emergency measures necessary to prevent a further deterioration in the economic, financial, and social situation in Ghana.”

“This suspension will include the payments on: our Eurobonds; our commercial term loans; and on most of our bilateral debt. This suspension will not include the payments of our multilateral debt, new debts (whether multilateral or otherwise) contracted after 19 December 2022 or debts related to certain short term trade facilities.

“We are also evaluating certain specific debts related to projects with the highest socio-economic impact for Ghana which may have to be excluded. This suspension is an interim emergency measure pending future agreements with all relevant creditors,” read parts of the statement.

“As it stands, our financial resources, including the Bank of Ghana’s international reserves, are limited and need to be preserved at this critical juncture,” it added.

 

Tags: EIUghanaGhana to struggle with debt service burden in 2023
No Result
View All Result

Highlights

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

Banking Sector Soundness Remains Robust in 2024 Amid Strong Profitability, Adequate Capital Buffers

Sha’Carri Richardson Withdraws from US Trials Following Arrest

From Singuluma to El Kaabi: Can CHAN 2024 Unleash the Next Hat-trick Hero?

Ghana to Welcome King’s Baton Relay on August 8 Ahead of 2026 Commonwealth Games

Trending

Features

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

August 2, 2025

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes Parliament has adjourned...

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

August 2, 2025

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

August 2, 2025

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

August 2, 2025
Bank of Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

August 2, 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.