IMF upgrades Ghana to moderate risk of debt distress

With continuing macroeconomic and exchange rate stability, and a clearer fiscal outlook, the IMF said in its Country Report on Ghana that the Staff now proposes to remove this judgement and upgrade Ghana to moderate risk of debt distress, consistent with the mechanical signal.“The exchange rate remains a key transmission channel, given the substantial share of FX-denominated external debt and non-resident holdings of domestic debt.

Despite this improvement, it pointed out that the space under the external debt-service-to-revenue ratio remains limited.