Ghana has moved closer to completing its debt restructuring programme after signing an agreement with Belgium to restructure €163 million owed to the country’s export credit agency.
Finance Minister Dr. Cassiel Ato Forson described the agreement as an important milestone in Ghana’s efforts to restore confidence in the economy and secure a more stable financial future.
“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.
Restructuring to Ease Pressure on National Budget
Dr. Ato Forson explained that the agreement will help ease pressure on the national budget by reducing the amount of government revenue required to service the debt.
He said the fiscal space created through the restructuring will allow government to redirect more resources towards public services and infrastructure, including healthcare, education, roads and other social programmes.
“For every Ghanaian, it means that more of our national resources can be directed towards improving lives rather than servicing unsustainable debt,” the Finance Minister said.
He further explained that reducing debt-servicing obligations would give government greater capacity to invest in sectors that directly affect the wellbeing 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.
Government Seeks Legal Backing for Fiscal Rules
The Finance Minister also disclosed that government is putting measures in place to prevent Ghana from returning to unsustainable debt levels.
According to him, the fiscal rules introduced by the government are being pursued for legal backing to ensure that future administrations also 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.
Belgium Deal Adds to Debt Restructuring Progress
Dr. Ato Forson expressed appreciation to the Belgian government for agreeing to restructure the €163 million debt, describing the agreement as part of the broader progress Ghana has made in addressing its debt challenges.
The latest agreement adds to Ghana’s ongoing efforts to restructure its external debt and restore fiscal stability following the country’s debt crisis.
Story by Freedom Etsey Lavoe
