World Bank Country Director for Ghana, Liberia, and Sierra Leone, Robert Taliercio, has warned Ghana against rushing back to international capital markets, describing such a move as premature and potentially risky.
According to him, an early return could send the wrong signal to investors and lead to a reversal of gains made under Ghana’s debt restructuring efforts, exposing the country to unsustainable borrowing costs.
He made these comments at the launch of the World Bank’s latest Public Finance Review report, titled “Building the Foundations for a Resilient and Equitable Fiscal Policy.”
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His caution comes after Ghana successfully restructured its domestic and external debts, securing significant relief under the $3 billion IMF Extended Credit Facility (ECF) programme.
“The risk now is falling into complacency with these achievements and returning to a business-as-usual mindset – a recurring error in the past. Ghana has requested a record of 17 IMF programs. As a result, the country has been under active IMF programs for 40 out of 68 years of its history,” he explained.
He added that: “A premature return to international capital markets could send the wrong signal to markets and a reversal to unsustainable borrowing costs.”
Since 2022, Ghana has been locked out of international capital markets for dollar funding due to high debt levels, sluggish economic growth and a weak balance of payments.
Source: CNR
