Terkper advocates debt repayment framework as Ghana eyes capital market re-entry

Ghana’s Presidential Advisor on the Economy, Seth Terkper, has called for a debt repayment mechanism. This comes as the government prepares to re-enter domestic and international capital markets.

Mr. Terkper spoke at the Graphic Ecobank Economic Forum in Accra. He emphasized that reopening the capital markets is timely but requires fiscal discipline. A credible debt management strategy is essential to restore investor confidence.

He stated, “If we are going to reintroduce bonds, we must introduce a debt repayment mechanism.”

Terkper highlighted Ghana's reliance on short- to medium-term borrowing instruments. He noted that using treasury bills and hybrid bonds is unsustainable for long-term development needs. Instead, he suggested aligning capital raising with investment horizons.

He stressed the importance of protecting investors, especially pension funds, through reliable repayment structures. “It’s very expensive and boring to use treasury bills for investment,” he said.

Terkper's comments come as Ghana regains macroeconomic stability after a domestic debt restructuring. The country is also engaged with the International Monetary Fund (IMF).

The planned re-entry into capital markets shows optimism about Ghana’s fiscal recovery. However, experts warn that success depends on effective future borrowing management and timely repayments to lenders.