“Any eurobond issuance this year is likely to be below the targeted $5bn,” says Mark Bohlund, senior credit research analyst at REDD Intelligence in London. “Ghana’s severe fiscal and public debt challenges will be difficult to sugar-coat to potential investors.”
The International Monetary Fund (IMF) deemed Ghana at high risk of debt distress in April 2020. With interest costs at close to 50% of government revenue, Ghana is already over-indebted, says Bohlund. An IMF annual review planned for the third quarter could make support conditional on a restructuring of external and overall debt, he adds.
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