As Ghana’s debt-restructuring talks approach their final stretch, the country’s leaders are facing a new dilemma.
The government needs to prove to investors that it can keep spending in check as it navigates a debt revamp, following a 2022 default on some $20 billion worth of international bonds and loans. But the ruling party also faces an election this December, pressuring it to up spending on things voters care about. That’s leading some investors to fret the election will set Ghana back onto the slippery slope of wider budget deficits, potentially harming the debt restructuring progress.
