Don’t rush back to capital market – Peter Quartey warns govt

Professor Peter Quartey, the Director of ISSER, has cautioned the government against hastily returning to the international capital market after Ghana’s recent debt restructuring.

Speaking at his inaugural lecture at the Ghana Academy of Arts and Sciences, he emphasized that excessive reliance on external borrowing, particularly Eurobonds, is unsustainable for long-term economic growth.

Ghana’s deficit financing stood at 3.2% of GDP in 2023 and is projected to rise to 5.2% in 2024, highlighting the need for better debt management.

While the IMF-supported debt restructuring aims to restore stability, Professor Quartey urged the government to prioritize domestic financing and multilateral funding, which are more sustainable and affordable. He warned against the rush to borrow externally again, stressing that capital market loans are costly and risky.