World Bank Country Director for Ghana, Liberia, and Sierra Leone, Robert Taliercio, has warned Ghana against rushing back to international capital markets, describing such a move as premature and potentially risky.
According
to him, an early return could send the wrong signal to investors and lead to a
reversal of gains made under Ghana’s debt restructuring efforts, exposing the
country to unsustainable borrowing costs.
He
made these comments at the launch of the World Bank’s latest Public Finance
Review report, titled “Building the Foundations for a Resilient and Equitable
Fiscal Policy.”
His
caution comes after Ghana successfully restructured its domestic and external
debts, securing significant relief under the $3 billion IMF Extended Credit
Facility (ECF) programme.
“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 of 17 IMF programs. As a result, the country has been under active IMF
programs for 40 out of 68 years of its history,” he explained.
He
added that: “A premature return to international capital markets could send the
wrong signal to markets and a reversal to unsustainable borrowing costs.”
Since
2022, Ghana has been locked out of international capital markets for dollar
funding due to high debt levels, sluggish economic growth and a weak balance of
payments.
Source: citinewsroom