Ghana on Monday announced the suspension of payments on most of its external debt, effectively defaulting on its debt obligations as it faces its worst economic crisis in decades.
Ghana’s finance ministry called the decision an “interim emergency measure”. It said the government “stands ready to engage in discussions with all of its external creditors to make Ghana’s debt sustainable.” Ghana has been struggling to service its debt since the start of the year after downgrades by multiple credit ratings agencies on concerns it would not be able to issue new, according to Reuters. Its public debt stood at 467.4 billion Ghanaian cedis in September, of which 42% was domestic.
The country spent between 70% to 100% of government revenue on debt payment, and its foreign reserves stood at around $6.6 billion at the end of September, able to cover less than three months of imports.
Bankrupt is the word. Nigeria is next. That's how African countries treasuries have been raped into pennilessness by it's corrupt leaders.