Ghana is second country with highest debt default risk in 2022 - Bloomberg report

The study by Bloomberg ranked El Salvador as the number one country.

The West African country’s debt to Gross Domestic Product (GDP) is estimated to be at 84.6% by the end of this year. An indication that Ghana’s debt would be over GHC400 billion by end of 2022.

Ghana’s public debt as of the first quarter of 2021was ¢391 billion (US$50.3 billion), the Bank of Ghana reported. As much as ¢40.1 billion was added to the debt stock, largely as a result of exchange rate fluctuation.

Ghana ranked 2nd among countries with highest debt default risk in 2022 by Bloomberg Pulse Ghana

The Bloomberg study also revealed that Ghana and Brazil’s interest expense to GDP is expected to hit 7.2% in 2022, the highest among the 25 countries, captured.

This means the two countries will spend more money to service their debts in 2022.

Tunisia is the third country on the list of 25 countries in the risk of debt default.

It is followed by Pakistan (4th), Egypt (5th), Kenya (6th), Argentina (7th), Ukraine (8th), Bahrain (9th) and Namibia (10th).

Prior to Ghana Government’s announcement of going to the International Monetary Fund (IMF) to seek a bailout the country’s economic situation was precarious because investors saw the Ghanaian economy as risky.

But that has changed since the IMF bailout announcement, calm has returned to the markets as interest rates have remained relatively stable.