Despite $3 billion bailout, Ghana has essentially gone bankrupt

The Ghanaian government has filed for bankruptcy after failing to pay billions of dollars it owed to international creditors in December.

According to a report by The New York Times, President Nana Akufo-Addo’s administration “had no choice but to agree to a $3 billion loan from the lender of last resort, the International Monetary Fund,” which helped to explain Ghana’s financial crisis, in which government organisations owed billions to contractors and were in serious debt.

The media outlet noted that the financial crisis has had far-reaching effects, with many contractors laying off workers, exacerbating the country’s unemployment problem.

Source: Business Insider