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7. Comparison of Ghana and other IDA graduates

Benchmarking Ghana against other IDA graduated and Blend countries provides insights as to whether lessons from other recently graduated countries could be helpful for Ghana in the years to come. Although such benchmarking goes beyond the aim of the current Evaluation Study, Table 5 helps put Ghana’s external debt situation in perspective.

Table 5: Recent IDA graduates and current Blend countries (2016)
Country Graduation Current Lending Credit ratings Present value of external debt
Year GNI per capita Eligibility S&P % of Exports % of GNI
Albania FY08 4250 IBRD BB 105.2 32.2
Indonesia FY08 3400 IBRD BBB- 106.4 20.3
Montenegro FY08 6970 IBRD AAA 132.7 64.7
Serbia FY08 5280 IBRD BB 88.7 49.5
Azerbaijan FY11 4760 IBRD BB+ 42.6 22.3
Angola FY14 3440 IBRD B 103.4 34.5
Armenia FY14 3760 IBRD .. 96.9 39.1
Bosnia FY14 4890 IBRD BB- 73.3 28.5
Georgia FY14 3810 IBRD BB+ 77.3 40.8
India FY14 1660 IBRD BBB+ 37.2 7.4
Bolivia FY17 3070 IBRD BB 76.5 19.3
Sri Lanka FY17 3780 IBRD B+ 164.6 36.6
Vietnam FY17 2050 IBRD BB- 23.2 23.0
Cameroon   1200 Blend BBB- .. 22.7
Congo, Rep.   1710 Blend BBB- .. 36.9
Kenya   1380 Blend BB- 140.4 21.2
Moldova   2120 Blend .. 31.8 14.8
Mongolia   3550 Blend B 63.6 35.0
Nigeria   2450 Blend B 22.9 2.3
Pakistan   1510 Blend B 179.8 16.4
Papua New Guinea   NA Blend BB 17.0 ..
Uzbekistan   2220 Blend .. .. 8.7
Ghana   1380 Blend B 95.4 40.9

Note: Zimbabwe is not included due to special circumstances (blend terms). Moreover, "Blend" countries under the Small Island Economies Exception have also been excluded. Under IBRD terms, the average repayment maturity is 20 years with 35 years to maturity. In addition, countries with loans under IDA repayment terms (Blend countries) face grace periods of 5 years with 30 years to maturity (under normal IDA eligibility, grace periods are 6 years with 38 years to maturity).

At the end of 2016, Ghana’s external debt was relatively large as percentage of GNI and of total exports. Also, as mentioned, the most recent debt sustainability analysis concluded that although a marginal improvement was seen in 2017 Ghana continues to be at high risk of debt distress (IMF, 2018). As shown in table 5, a high debt level is not unseen among other IDA graduates and Blend countries, and proactive debt management is a key to managing this challenge (World Bank, 2017, IMF, 2018).

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This page forms part of the publication "Evaluation Study – Graduation and Development Finance in the SDG Era – A Case Study of Ghana, May 2018" as chapter 7 of 9.
Version no. 1.0, 2018-06-27
Publication may be found at the address http://www.netpublikationer.dk/um/evaluation_case_study_ghana_may_2018/index.html