Even though Ghana could soon have access to the international capital markets for new dollar borrowings, some observers have cautioned government to be mindful of its debt levels.
This is the view of some international investors and Eurobond holders after government reached a deal on restructuring about $13.1 billion.
Ghana has over the past two years been prevented from going onto the international market to raise dollars from investors.
Government was shut out of that market after; it announced that it is working to restructure debts owed commercial creditors.
The Eurobond holders have also disclosed that, government is now undertaking some measures that will protect investors’ funds. It is expected that the conclusion of the debt restructuring will restore some market confidence.
Other financial observers have however warned that it will not be prudent for government to immediately rush to the capital market to raise funds in dollars considering the country’s debt levels.
This, they argue could have a negative impact on the economy since Ghana was first of all forced to go to the International Monetary Fund due to over borrowing.
Credit: Joy Business