Ghana has moved closer to completing its debt restructuring programme after signing an agreement with Belgium to restructure €163 million owed to the country’s export credit agency, Finance Minister Cassiel Ato Forson has said.
According to the Finance Minister, the agreement was an important step towards restoring confidence in Ghana’s economy and securing a more stable financial future.
“With this agreement, Ghana moves closer to completing the debt restructuring, restoring confidence and securing a more stable economic future for our people,” he said after the signing.
The Finance Minister explained that the restructuring would ease pressure on the national budget by reducing the amount of government revenue required to service debt, allowing more resources to be directed towards public services and infrastructure.
“For every Ghanaian, it means that more of our national resources can be directed towards improving lives rather than servicing unsustainable debt,” he said.
Dr Ato Forson said the agreement was significant beyond the financial figures because of its potential impact on the delivery of public services.
“It means less pressure on the national budget. And obviously, the people of Ghana will have an opportunity to experience more healthcare because we are reducing the amount we use to service the debt,” he said.
He added that the fiscal space created through the restructuring would enable government to invest more in schools, roads and other social infrastructure.
The Finance Minister said Ghana was also putting measures in place to prevent a return to unsustainable debt levels.
“We largely want to ensure that the fiscal rules that we have instituted today are enshrined in law. So that, even if this government is not there, the next government will have to make sure that these fiscal rules are respected,” he said.
Dr Ato Forson expressed appreciation to the Belgian government for agreeing to restructure the €163 million debt, describing the agreement as part of the broader progress Ghana has made in addressing its debt challenges.
The latest agreement adds to Ghana’s ongoing efforts to restructure its external debt and restore fiscal stability following the country’s debt crisis.
Source: businesspostonline
