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Bright Simons: NPP Gov't Can't Survive Debt Restructuring


Bright Simons, vice president of IMANI-Africa, asserts that the NPP government's chances of recovery are slim if it gives in to demands to restructure both internal and external debt.

In an interview with Bloomberg, the analyst claimed it would force the government to further cut spending "over the next two years, and if they did that, they would not be able to win the next election under any circumstances."

As rearrangement of the country's liabilities would need consent from parliament, where there is a turf war in numbers that has simmered since the beginning of the 8th parliament, the opposition currently holds the key to an expedited IMF accord.

Beyond this difficulty, Bright Simons warned that debt restructuring might take longer than expected because the government should first create consensus.

Building consensus at the top of the political pyramid requires time, according to Bright Simons, who added that "you have to go to traditional leaders, to religious leaders, and the head of the opposition."

Ghana was identified as being at a high risk of financial hardship and sensitive to growing debt servicing costs in the most current IMF debt sustainability examination, which was completed in 2021. When Fitch Ratings downgraded Ghana's debt to CC, a junk category, last week, it highlighted that interest rates have increased since then.

Content created and supplied by: @NanaKwame (via Opera News )


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