Ghana at high risk of debt distress, finance minister says

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Ghana will freeze the hiring of public and civil servants and extend a moratorium on government car purchases and non-essential travel in order to tackle a spiralling debt crisis, finance minister Ken Ofori-Atta said on Thursday.

Presenting the West African nation's 2023 budget in parliament, Ofori-Atta said Ghana was at high risk of debt distress and has agreed on a debt management strategy with the International Monetary Fund .

Investment bank Morgan Stanley said on Thursday that it expected Ghana to restructure both its domestic and external debt. He said the depreciation of the cedi was "seriously affecting" Ghana's ability to manage its public debt, which has increased to $48.9 billion this year."The good news is that all revenue measures are in line with what the IMF would have wanted," said Razia Khan, chief economist for Africa and the Middle East at Standard Chartered.BAN USE OF GAS-GUZZLERS

The government will also ban the use of V8 and V6 engine vehicles and extend a 50% reduction on fuel allocations and a ban on non-essential travel.

 

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