Ghana has signed its 11th bilateral debt restructuring agreement, this time with India’s Export-Import Bank, as the government signals growing confidence that the country is moving out of the most acute phase of its debt crisis.
Announcing the development, Finance Minister Dr. Cassiel Ato Baah Forson said the latest agreement marks another step in Ghana’s external debt resolution process and strengthens the government’s effort to restore long-term fiscal stability. His remarks come amid a broader official narrative that the country is now on a “steady” path toward a lower risk of debt distress and that “the worst is behind us.”
The minister said the government remains firmly committed to meeting all restructured debt obligations “on time” and keeping debt sustainability at the centre of future financing decisions. That position is consistent with the Finance Ministry’s recent messaging around fiscal discipline, reserve strengthening, and tighter controls on public borrowing.
According to him, Ghana “will not return” to a cycle of unsustainable borrowing, signalling a harder policy line on how new debt will be contracted in the post-restructuring phase. The statement is likely to be read by investors and development partners as an attempt to reinforce policy credibility after the severe financing pressures that pushed the country into debt restructuring.
A key part of that reset, he said, will be the introduction of a new Loans Act intended to place stricter controls on the use of borrowed funds. The proposed legislation, he noted, will “strictly define” the purposes for which loans can be contracted, with a focus on ensuring that future borrowing is directed only toward “high-impact” and “value-for-money” investments.
That policy direction suggests a shift away from debt-funded spending that does not generate sufficient economic or fiscal returns, and toward a framework in which public borrowing is more explicitly tied to measurable development outcomes. In practical terms, it could tighten scrutiny over capital projects, improve project selection standards, and raise the threshold for new sovereign loan approvals.
The minister said the government’s guiding principle is that “whatever we borrow must be worth it,” stressing that all future debt-financed spending must produce “tangible benefits” for Ghanaians. The message reflects the administration’s attempt to rebuild confidence in public financial management after the restructuring process and to assure creditors of a more disciplined borrowing strategy going forward.
