Bank Group Limited says five major African economies will face debt risks over the next two years as pandemic-induced stimulus and relief for needy countries draws to an end.
“If this doesn’t transpire, the government would have to rely on an improving fiscal position which may be difficult to achieve in 2022 given overly ambitious tax revenue expectations,” it said.According to Qureishi, lenders see a re-financing in the Eurobond market to be impractical when the US Federal Reserve increases interest rates and if Ghana’s budget targets prove elusive.
Qureishi said stabilising public finances may prove difficult given the government’s “overly ambitious” revenue estimates, while efforts to cut spending could face hurdles with public-sector wages and debt-service costs accounting for more than half of expenditure.“The consequences are dire. We are a proud nation. We have the resources. We have the capacity. We are not people of short sight,” he had said.