Debt restructuring may worsen economic situation if not managed well – Bright Simons

Vice President of IMANI Africa, Bright Simons says Ghana’s economic situation may worsen if the government does not manage its debt restructuring effectively.

Speaking on Ghana’s Debt Restructuring Forum organized by Citi TV/Citi FM in collaboration with ACEP and IMANI Africa, on the theme, Ghana’s Debt Saga: Now, What Next.

Bright Simons mentioned some reasons that could continually lead Ghana to the International Monetary Fund (IMF) for a bailout.

“Usually, if a country does not treat investors well, the two things that happen are that your cost of borrowing goes up because investors now assume that you are risky, so they charge more.

 So I suspect that if we are not careful, two things will happen.

One is that post-restructuring, the cost of borrowing will keep going up

“So if government does not manage the debt restructuring effectively, it will worsen the situation next year and the year after.”