Adoa News Adoa News
Ghana has taken another step towards completing its debt restructuring programme after reaching an agreement with Belgium to restructure €163 million owed to the country’s export credit agency.
Finance Minister Dr Cassiel Ato Forson said the agreement would help ease pressure on the national budget while strengthening confidence in Ghana’s economic recovery.
“With this agreement, Ghana moves closer to completing the debt restructuring, restoring confidence and securing a more stable economic future for our people,” he said after the signing.
More fiscal space for development
According to Dr Ato Forson, restructuring the debt will reduce the amount of government revenue required for debt servicing, creating additional fiscal space for spending on public services and infrastructure.
“For every Ghanaian, it means that more of our national resources can be directed towards improving lives rather than servicing unsustainable debt,” he said.
The Finance Minister said the agreement could translate into increased government spending on critical sectors such as healthcare, education and infrastructure.
“It means less pressure on the national budget. And obviously, the people of Ghana will have an opportunity to experience more healthcare because we are reducing the amount we use to service the debt,” he stated.
He added that resources freed up through the restructuring could also support investment in schools, roads and other social infrastructure.
Government seeks to prevent future debt crisis
Dr Ato Forson said government was also taking steps to ensure that Ghana does not return to the levels of unsustainable borrowing that contributed to the country’s recent debt crisis.
He said the government intends to strengthen fiscal rules by having them enshrined in law to ensure that future administrations comply with them.
“We largely want to ensure that the fiscal rules that we have instituted today are enshrined in law. So that, even if this government is not there, the next government will have to make sure that these fiscal rules are respected,” he said.
The Finance Minister expressed appreciation to the Belgian government for agreeing to restructure the €163 million debt, describing the agreement as an important component of Ghana’s broader efforts to restore fiscal stability.
The latest agreement adds to the government’s ongoing external debt restructuring efforts as Ghana works to address the consequences of its debt crisis and return the economy to a more sustainable financial position.