Ghana has signed an agreement with Belgium to restructure €163 million in debt owed to the country’s export credit agency, in a move expected to ease pressure on the national budget and create more fiscal space for public services.
Finance Minister Dr. Cassiel Ato Baah Forson said the agreement forms part of Ghana’s broader debt restructuring programme and would allow more national resources to be directed towards healthcare, education, roads and other social infrastructure.
“This particular agreement is important because debt restructuring is not always about just the numbers. It has to do with the people of Ghana and our citizens,” Dr. Forson said.
He explained that reducing debt servicing costs would enable government to redirect resources towards improving the lives of citizens.
“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 said.
Dr. Forson said Ghana had previously reached a point where about 55% of national revenue was being used to service debt, leaving limited resources for public services.
He said the situation had improved significantly, with Ghana now spending less than 20% of total revenue on debt servicing.
“And so, today, I’m proud to say that we have made some considerable progress. Today, we are spending less than 20% of our total revenue to service our debt,” Dr. Forson stated.
According to him, the latest agreement brings Ghana closer to completing its debt restructuring programme and restoring confidence in the economy.
“What I want to also say is that, 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.
Dr. Forson expressed appreciation to the Belgian government for agreeing to restructure the €163 million debt and assured that measures were being introduced to prevent Ghana from returning to an unsustainable debt position.
He said government was also working to have its fiscal rules enshrined in law to ensure that future administrations maintain fiscal discipline.
