The Economist Intelligence Unit (EIU) is optimistic Ghana’s debt-carrying capacity could easily improve in the future.

According to the London-based firm, the country would reach a deal with its external debt holders soon.

It however added that the creditors want to build contingencies into their deals which has caused delays for Ghana in getting an agreement.

Principal Economist and Risk Manager, Middle East and Africa at the EIU, Benedict Craven, speaking on the "Global Outlook: African sovereigns at high risk of debt distress" said Ghana’s debt situation is improving.

“In theory, there is a natural disincentive to letting things rumble on for far too long. That is the more reason the country gets in a limbo without a deal, the more its debt service capacity get eroded as its economy get degraded potentially permanently”.

“But in the case of Zambia and Ghana, this disincentive mechanism has not really been affected at all. Because both are commodity exporting countries and with high export prices means its debt current capacity can be easily improved in the future and creditors want to build these contingencies into their deals with sovereigns and that has caused delays for Ghana and bondholders”, he stated.

EIU also said other African sovereigns face a different set of difficulties that lie in the large share of debt that would be off limits, in the event of a restructure.

Almost one‑half of aggregate debt owed by low‑income, high‑risk African countries is multilateral (of which three‑quarters is concessional) and therefore largely non‑negotiable.