Ghana has capacity to pay back its debts –IMF

IMF: Ghana Can Repay Debts with Proper Implementation of Loan Program

Ghana can repay its debts if it follows the US$3 billion loan program with the IMF. This was stated by Mr. Stéphane Roudet, IMF Mission Chief for Ghana. He spoke during a roundtable discussion with journalists at the recent IMF and World Bank meetings in Washington, DC.

Mr. Roudet mentioned that the macroeconomic framework assumes these debts will be repaid. However, he noted that repayment speed depends on the government's ability to secure financing.

In the 2025 budget, the government allocated GHS13 billion for debt repayment. This is part of efforts to meet its financial obligations.

Responding to a question from the Ghana News Agency, Mr. Roudet acknowledged a significant debt accumulation in 2024. He said last year's primary balance showed a deficit of about 3.25% of GDP.

This contrasts with a target surplus of 0.5% under the current IMF program. The staff mission discussed short-term interventions to improve Ghana's fiscal situation.

He highlighted that this year’s budget aims for a primary surplus of 1.5% of GDP. This goal relies on strong spending and revenue efforts.

The Fund has noticed some fiscal reforms already in place, including changes to the Procurement Act. These changes require Ministry of Finance authorization before public procurement agencies can issue permits.

Mr. Roudet emphasized that this reform centralizes financial control in project implementation processes. The mission also discussed measures to address structural challenges like Fiscal Framework and Fiscal Council reforms.

Effective implementation of these reforms could strengthen Ghana's finances and help meet debt obligations.

Ghana has been working under a three-year US$3 billion Extended Credit Facility (ECF) since 2023. This is the country’s 17th loan-supported package from the IMF.

The program aims to restore macroeconomic stability and ensure debt sustainability for economic resilience. It began under former President Nana Addo Dankwa Akufo-Addo and continues under President John Dramani Mahama until 2026.

Francis Ntow, Washington DC (USA)
GNA