The World Bank has listed Ghana as one of the top 10 countries with high debt risk exposure.
According to the Bank, Ghana is a High Risk Debt Nation with $5.6bn IDA debt stock.
The World Bank made this known in its latest financial statement.
Other countries on the list included Ethiopia with $11.2bn IDA debt stock, Kenya with $10.2bn IDA debt stock, Tanzania with $8.3bn IDA debt stock, , and Uganda with $4.4bn IDA debt stock; and Nigeria with a debt stock of with $11.7bn IDA debt stock.
India led the list with $22bn IDA debt stock, followed by Bangladesh with $18.1bn IDA debt stock, Pakistan with $16.4bn IDA debt stock, and Vietnam with $14.1bn IDA debt stock.
The financial statement for International Development Association, which was among the World Bank FY21 audited financial statements, was released on Monday, August 9, 2021.
According to the statement, “IDA faces two types of credit risk: country credit risk and counterparty credit risk.”
It said “Country credit risk is the risk of loss due to a country not meeting its contractual obligations; and counterparty credit risk is the risk of loss attributable to a counterparty not honoring its contractual obligations.”
The statement added that “IDA is exposed to commercial as well as noncommercial counterparty credit risk.”
According to the statement, “As of June 30, 2021, the 10 countries with the highest exposures accounted for 66 per cent of IDA’s total exposure.”
