Ghana’s Finance Minister announced significant external debt repayments of $8.7 billion over four years, with peak payments in 2027 and 2028. Concerns were raised regarding the absence of financial buffers to address this burden while the country faces economic recovery challenges. President Mahama is focused on boosting the economy amid a cost-of-living crisis and ongoing IMF support.
Ghana’s Finance Minister, Cassiel Ato Baah Forson, addressed Parliament on Tuesday, highlighting the nation’s significant external debt service obligations projected for the next four years. He stated that Ghana will be required to repay $8.7 billion, which equates to 10.9% of the country’s GDP, with peak repayment years anticipated in 2027 and 2028.
Forson detailed that the debt service commitments include $2.5 billion due in 2027 and $2.4 billion in 2028. He expressed concern regarding the lack of financial buffers to mitigate the impact of these unprecedented obligations.
The country is currently recovering from its worst economic crisis in a generation, exacerbated by the COVID-19 pandemic, the Ukraine war, elevated global interest rates, and extensive borrowing practices. President John Dramani Mahama, who assumed office in January, has pledged to revitalize the economy and generate employment while addressing a cost-of-living crisis and managing an ongoing International Monetary Fund bailout alongside the sovereign debt default affecting the country’s key cocoa and gold sectors.
In summary, Ghana is confronting substantial external debt service obligations, amounting to $8.7 billion over four years, with critical repayments in 2027 and 2028. Finance Minister Forson emphasizes the absence of adequate financial buffers to relieve this burden. With the nation in recovery from a severe economic crisis, conversations about economic revitalization and employment creation remain essential as the government navigates complex challenges.
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