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08.04.2020 Feature Article

In Financial Terms Is The COVID-19 Pandemic A Force-Majeure-Situation?

In Financial Terms Is The COVID-19 Pandemic A Force-Majeure-Situation?
LISTEN APR 8, 2020

It is said that up to a third of the global workforce will suffer financial losses as a result of the effects on national economies of the COVID-19 pandemic. Today, the UK newspaper, The Daily Telegraph, published an article in its online digital edition, entitled: "A billion workers to lose out as virus ravages jobs market".

According to the story: "One-third of the global workforce is expected to suffer financial hardship as the coronavirus destroys jobs, cuts working hours and slashes pay."

Clearly, there will be a slow down in economic activities globally - as the virus spreads to more and more nations: whose economies are then negatively impacted because every day life is turned upside down by the virus and the measures taken to contain it, such as lockdowns lasting weeks.

In light of the likely negative impacts of the lockdowns, and that of other measures taken by the government, on our national economy - such as the free three months supply of potable water to households nationwide - it is vital that extraordinary measures are put in place, to ensure that Ghana's economy doesn't grind to a halt.

The question we all ought to ponder over is: How can we in good faith be expected to continue paying the coupons on our issued sovereign bonds - when the COVID-19 pandemic amounts to a newly-arisen force-majeure-situation?

Furtheremore, our Chinese ally, too, must move rapidly to help it's partners in sub-Saharan Africa, continue growing, by halting all interest payments on loans owed it by nations in the continent - converting them into long-term interest free loans with five-year moratoriums: because the selfsame force majeure that COVID-1 represents, applies to all Chinese loans, be they private sector, or public sector loans. Haaba.

Sent Samsung tablet.

Kofi Thompson
Kofi Thompson, © 2020

The author has 549 publications published on Modern Ghana. Column Page: KofiThompson

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