Can Ghana’s Debt Trap of Crisis and Bailouts Be Stopped?

The New York Times (NYT) (09/18/2023)
  • The sudden spike in interest rates forced Ghana to request it’s 17th IMF bailout ($3B loan) since gaining independence (1957).
  • As central banks worldwide hiked interest rates to quell inflation, Ghana’s foreign debt become more expensive to repay with local currency; 70% of government revenues were going towards repaying its $63B debt.
  • Ghana’s heavy reliance on gold, cocoa and oil exports make it vulnerable to sudden price swings and its export-driven economy hasn’t generated widespread jobs.
  • Article profiles Ghanians struggling under 40-50% inflation.