The World Bank has praised Ghana for successfully completing 93% of its debt restructuring but cautioned that the country’s economic outlook remains fragile.
At the launch of Ghana’s public financing review in Accra, Robert Taliercio, the World Bank’s Country Director for Ghana, Liberia, and Sierra Leone, expressed concerns about the potential for a return to unstable borrowing practices.
” With 93% of its debt restructuring now complete, the macroeconomic outlook has improved but does remain fragile. The risk now is falling into complacency with these achievements and returning to business as usual, a recurring error in the past, sadly, in Ghana.”
He emphasized the importance of maintaining fiscal discipline, improving revenue collection, and taking decisive action to address liabilities in the energy and cocoa sectors to ensure long-term economic stability.
“Just to as a point of history, Ghana has requested a record of 17 IMF programs. And as a result, the country has been in IMF programs for forty out of its sixty-eight years of history. But moving on, a premature return to international capital markets could send the wrong signal and also a reversal to unsustainable borrowing costs.
Not fully completing the adjustment program that is reducing debt to GDP to 55% by 2028 could jeopardize the credibility of policy reforms fundamentals for long term growth.”
Representing the Finance Minister, Public Finance Management Practitioner at the Ministry of Finance, Dr. Amankwah Poku, emphasized government’s commitment to fiscal discipline and economic resilience.
“As we implement these recommendations, it is crucial to ensure that our fiscal adjustments are fair and efficient, protecting the most vulnerable in our society. We must prioritize pro-growth and pro-poor fiscal measures efficiency of public spending in sectors such as education, health, social protection, and agriculture.”
“We are committed to deepening our collaborations with the World Bank, development partners, and all stakeholders in implementing pragmatic policies that enhance fiscal discipline, promote economic transformation, and improve the livelihoods of Kenyans. To this end, we will continuously evaluate and refine our policies to respond to emerging economic trends and global uncertainties.”
