Ghana’s balance of payments deficit worsens to $3.64 billion

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Ghana’s balance of payments further deteriorated to a deficit of $3.64 billion in December from a $3.4 billion deficit the previous quarter, central bank data showed on Saturday.



The West African nation is facing an economic crisis that saw consumer inflation rise to 54.1% last month. The cedi currency has depreciated around 50% annually, and interest payments on government debt have swelled to between 70% and 100% of GDP.

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Recent balance of payments woes have been largely driven by a sharp reversal in capital flows, with Ghana’s capital account deficit having worsened to $2.18 billion in December from $1.64 billion in September.

At the same time last year, Ghana had a capital account surplus of more than $3.3 billion.

Ghana secured a $3 billion staff level bailout from the International Monetary Fund late last year, but must restructure its debts in order to obtain executive board approval.

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The country has requested to restructure its bilateral debt under the Common Framework platform supported by the Group of 20 major economies, and is currently negotiating terms for a domestic debt exchange programme with local bond holders.



 

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Source Reuters
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