Ghana Seeks 17th IMF Bailout Since 1957 Amid Spiraling Debt Crisis

Ghana's government is bankrupt and has turned to the IMF for a $3 billion bailout, its 17th since 1957. Inflation remains over 40%.

The causes are global - the pandemic, Ukraine war, and higher food/fuel prices - but Ghana's recurring debt crises result from overspending and economic over-reliance on raw material exports.

With interest payments consuming over 70% of revenues, Ghana defaulted on billions in foreign debt in December 2022. Restructuring such complex debt across so many creditors will be challenging.

Households and businesses are suffering from high inflation, a rapidly depreciating currency, and spiking interest rates. Purchasing power and savings have been cut in half.

To escape the debt trap, Ghana and other developing nations need more low-cost financing for investment, better debt management, economic diversification beyond raw materials, and possibly some debt forgiveness.