The Finance Minister, Dr. Mohammed Amin Adam, has acknowledged the pivotal role debt restructuring has played in Ghana's economic recovery.
According to him, following the 2022 financial crisis, the debt restructuring became the much-needed initiative for government to resuscitate the country’s economy.
He made this acknowledgment while presenting the Mid-Year Budget Review in Parliament on Tuesday.
Highlighting the benefits of the initiative, Dr Amin Adam listed, “...rapid restoration of macroeconomic stability and debt sustainability; avoidance of steeper fiscal adjustment; creation of fiscal space for development spending; and prevention of a domestic and external banking crisis.”
Nonetheless, the Finance Minister expressed the government’s commitment to maintain caution despite these benefits.
“We remain committed to exercising caution, informed by the lessons learned from our experiences and the sacrifices of every Ghanaian,” he said.
Dr. Amin Adam expressed hope for the future and noted the government’s debt strategy, which includes deepening reforms to ensure that the positive changes are irreversible.
He also stated that efforts will focus on building financial buffers to reduce vulnerabilities and enhance the country’s resilience against future economic shocks.
“Our debt strategy going forward includes deepening reforms to ensure irreversibility and building buffers to reduce vulnerabilities and enhance resilience,” he said.
Ghana began working to revamp its debt a little over a year ago as part of a deal with the International Monetary Fund, reaching an agreement in principle with bilateral creditors in January to rework $5.4 billion of obligations under the Group of 20 Common Framework for Debt Treatment.
That agreement set the tone for the restructuring of Ghana's Eurobond debt.
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