Ghana has been borrowing, servicing debts and paying interests for years. The cost of borrowing funds, the
rate of interest, the amounts outstanding, plus any fees associated with the diverse financing arrangements
over the years has become a burden on Ghana’s national finances. This has led the country to periodically
seek debt reliefs from its creditors, and this time around, the option of debt-restructuring has been
adopted.
Ghana signed up to the “Highly Indebted Poor Country” (HIPC) program in the year 2000 as a result of its
inability to continue servicing its debts, and underwent a series of reforms that ended in 2003 & led to a
huge debt-relief. After HIPC, Ghana was able to enter the Eurobond market in 2007 & expanded its
borrowings. Over the years, the rate at which Ghana has borrowed, has far outstripped the growth rate in
revenue & national output. Read more here
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