As Ghana continues negotiations to restructure the remaining Saderea bonds, a finance expert is urging the government to take a bolder and cleaner approach in addressing the problem to reduce pressure on the economy immediately.
The current approach to dealing with the debt, the expert believes, is rather stretching the burden far into the future.
Dr. Richmond Atuahene, in an interaction with The High Street Journal, says the current talks present an opportunity to cut the debt problem decisively, not merely rearrange it.
Who Are the Saderea Bondholders?
Dr. Atuahene begins by putting the issue in context. According to him, the investors now at the negotiating table are largely holders who did not voluntarily participate in Ghana’s earlier debt restructuring exercises.
This means that, while many creditors accepted haircuts or new terms earlier, these bondholders stayed out. Their debt has therefore continued to hang over Ghana’s finances, adding to uncertainty.
That, he argues, is why this moment matters.
His Proposal: Pay Half, Restructure the Rest
Against the government’s proposal to the investors, which is stretching the full amount into the future, Dr. Atuahene proposes a two-step solution.
First, the government should pay half of the Saderea debt outright. Second, the remaining half should be restructured over a longer period with manageable terms.
This approach, he says, would significantly reduce the debt overhang that continues to weigh down Ghana’s economy.
Using a household analogy, he explains it this way: if you owe too many people, spreading all the debt over many years does not free you. But paying off a large portion at once gives you room to breathe and plan.
Why Debt Overhang Is the Real Problem
At the heart of Dr. Atuahene’s argument is a justification that you cannot build reserves when heavy debt is sitting on your neck.
As long as large obligations remain unresolved, investors remain cautious, reserves are drained, and economic confidence stays fragile. Even well-designed programmes struggle under the weight of unresolved debt.
Paying half outright, he argues, sends a strong signal that Ghana is serious about cleaning its balance sheet, not just postponing problems.
The Bottomline
Dr. Atuahene believes this approach would also boost confidence, both locally and internationally. It shows discipline and commitment, and it also reduces uncertainty.
For policymakers, it creates space to focus on growth rather than constant crisis management. Most importantly, it helps Ghana move from survival mode to recovery mode.
As negotiations on the Saderea bonds continue, Dr. Atuahene’s proposal adds a fresh perspective to the debate.
