The government has expressed confidence in its ability to fulfil all obligations related to restructured debts within the next two years, citing improved economic conditions.
At the recent monthly economic press briefing, Finance Minister, Dr. Mohammed Amin Adam, highlighted the country’s strong fiscal performance in recent months as a foundation for meeting these commitments.
He emphasised that robust policy measures are in place to support recovery for individuals and businesses impacted by the debt restructuring.
“I do not doubt that within a year or two, those who have lost money will recover it,” Dr. Adam assured.
The minister also confirmed that the government is on track to meet its next Eurobond payment, due on January 2, 2025. This follows the successful disbursement of $520 million coupon payments in October 2024. “We are ready. We will not default,” he asserted.
Regarding economic growth, Dr. Adam noted that Ghana’s economy has shown a strong rebound. He cited an increase in the nominal size of the economy from US$56 billion in 2016 to US$76 billion by the end of 2023, with further growth expected in 2024.
However, the feasibility of the government’s commitment to repaying restructured debts within two years depends on several economic factors, including current performance, future economic conditions, and the effectiveness of policy implementation.
According to Dr. Amin Adam, the government is optimistic about honouring these commitments due to recent improvements in economic indicators and robust fiscal policies
While the government’s ability to pay recent coupon obligations (for example US$520 million in October 2024) and the projected economic growth suggest progress, Ghana’s economic challenges, such as debt sustainability and potential global economic headwinds, could pose risks. Factors like stable revenue generation, controlled inflation, and international financial support will be critical.
Nevertheless, this optimistic outlook reflects the administration’s commitment to restoring investor confidence and ensuring long-term financial stability.
