Robert Taliercio, World Bank Country Director for Ghana, Liberia, and Sierra Leone, has cautioned Ghana against rushing back to international capital markets, warning that doing so could jeopardize the country’s recent economic recovery.
He explained that an early return could send negative signals to investors, potentially reversing the progress made through Ghana’s debt restructuring efforts and exposing the country to unsustainable borrowing costs.
He made the remarks during the launch of the World Bank’s latest Public Finance Review report, titled “Building the Foundations for a Resilient and Equitable Fiscal Policy.”
His warning comes after Ghana successfully restructured both its domestic and external debts, securing substantial relief through the $3 billion IMF Extended Credit Facility (ECF) program.
While acknowledging these achievements, Mr. Taliercio urged caution, emphasizing that Ghana has a history of reverting to unsustainable financial practices.
“The risk now is falling into complacency with these achievements and returning to a business-as-usual mindset – a recurring error in the past. Ghana has requested a record 17 IMF programs and has been under active IMF supervision for 40 out of its 68 years of independence,” he stated.
He also emphasized that a hasty return to international markets for dollar funding could backfire, leading to higher borrowing costs and renewed financial instability.
Since 2022, Ghana has been shut out of international capital markets due to rising debt levels, slow economic growth, and a weak balance of payments.
