As the era of cheap money draws to an end, bondholders are no longer prepared to cut Ghana any slack.<\/p>\n The West African nation\u2019s dollar bonds have slumped 10% in 10 days, moving deeper into distressed territory as investors judge that re-financing debt in the Eurobond market won\u2019t be an option when the Federal Reserve hikes rates and budget targets remain elusive, Bloomberg reports.<\/p>\n The extra premium demanded on Ghana’s sovereign dollar debt jumped on Tuesday to an average of 1,145 basis points, from 683 basis points in September.<\/p>\n Its US$27 billion of foreign debt had the worst start to the year among emerging markets, extending last year’s 14% loss, according to a Bloomberg index.<\/p>\n Meanwhile, the World Bank, in its January 2022 Global Prospects report, said: \u201cMany Sub-Saharan African countries saw a marked deterioration in fiscal balances because of deployed relief measures, depleting already-narrow fiscal space (Ghana, Mozambique, Rwanda)\u201d.<\/p>\n \u201cThis, together with constraints on financing and pressures to improve debt sustainability, will lead to a much less supportive fiscal stance across the region over the forecast horizon.\u201d<\/p>\n The Bretton Woods institution added: \u201cFiscal adjustments are expected to predominantly happen on the expenditure side with a bigger reduction in fiscal deficits in resource-rich countries, partly reflecting revenue boosts from higher commodity prices and consolidation efforts in some countries.\u201d<\/p>\n Ghana\u2019s public debt stock, as of September 2021, was GH\u00a2341.8 billion, according to the November 2021 Bank of Ghana Summary of Economic and Financial Data has revealed.<\/p>\n This was equivalent to 77.8% of Gross Domestic Product (GDP).<\/p>\n Between July and September 2021, GH\u00a25.9 billion fresh loans were added to the total debt.<\/p>\n According to the data from the Bank of Ghana, the domestic debt went up to GH\u00a2178.1 billion in September 2021 from GH\u00a2173.9 billion recorded in July 2021.<\/p>\n This was equivalent to 40.5% of GDP.<\/p>\n The financial sector resolution bond stayed the same at GH\u00a214.9 billion in September 2021.<\/p>\n This was equivalent to 3.4% of GDP.<\/p>\n The external debt fell by US$100 million in August to US$27.9 billion in September 2021, equivalent to 37.2% of GDP.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Finance Minister, Ken Ofori-Atta As the era of cheap money draws to an end, bondholders are no longer prepared to cut Ghana any slack. The West African nation\u2019s dollar bonds have slumped 10% in 10 days, moving deeper into distressed territory as investors judge that re-financing debt in the Eurobond market won\u2019t be an option […]<\/p>\n","protected":false},"author":1,"featured_media":224238,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[72],"tags":[1579,1580,1581,1582,250,664,344,1583,1584,1585],"class_list":["post-748290","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-bloomberg","tag-debt","tag-deeper","tag-distress","tag-ghanas","tag-investors","tag-lose","tag-patience","tag-report","tag-sinks"],"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/748290","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/comments?post=748290"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/748290\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=748290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=748290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=748290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Finance](\"https:\/\/www.ghanamma.com\/wp-content\/uploads\/2021\/07\/91860772.295.jpg\" "\\"Finance")
Finance Minister, Ken Ofori-Atta<\/span><\/span><\/p>\n<\/div>\n