Information gathered from Business Insider Africa has indicated that Ghana is one of 32 African countries currently on the World Bank’s list of ‘heavily indebted countries’.
The heavily indebted poor countries’ list launched in 1996 is a joint initiative by the World Bank and the International Monetary Fund (IMF).
In all, there are as many as 40 countries in the world on the HIPC list with the remaining 7 from other continents.
The African list includes Ghana, Tanzania, Ethiopia, Benin, Burkina Faso, Burundi, Cameroon, Central African Republic, Chad, Comoros Islands, Democratic Republic of Congo, and the Republic of Congo.
The others are Ivory Coast, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Niger, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, Somalia, Sudan, Tanzania, Togo, Uganda, and Zambia.
Ghana’s debt stock earlier this year ballooned to GH¢332 billion. The debt to GDP at the time also rose to 76.6% according to data released by the Bank of Ghana.
The debt stock which ended the first quarter of 2021 at GH¢ 304.6 billion, increased by almost GH¢30 billion in April and May and has since also seen a slight increase.
Experts say if Ghana’s debt continues to rise, a return to IMF will be the only option.
SOURCE: Modern Ghana