Expert urges fiscal responsibility by Gov’t following debt restructuring conclusion
Professor Peter Quartey, Director at the Institute of Statistical, Social and Economic Research (ISSER) at the University of Ghana, has affirmed that the official completion of Ghana’s debt restructuring with its creditors will reintroduce a degree of certainty into the financial markets.
His remarks follow Finance Minister Dr. Mohammed Amin Adam’s announcement of the successful conclusion of the country’s debt restructuring programme, encompassing $5.1 billion with official creditors and $13.1 billion with Eurobond holders.
The restructuring is projected to result in total savings of $8 billion.
In an address at a UK Town Hall meeting, Dr. Amin Adam underscored the government’s negotiation prowess, highlighting that the $5.1 billion restructuring with official creditors is expected to yield $2 billion in savings.
He further noted that the Eurobond restructuring would provide an additional $6 billion in savings.
Welcoming the news of the completion of Ghana’s external debt restructuring, Prof. Quartey urged the government to maintain fiscal discipline.
“This announcement brings a level of certainty that has been missing for far too long. Many investors, both individual and corporate, have been eagerly awaiting this news,” stated Prof. Quartey in an interview on Monday.
“The financial market abhors uncertainty and noise. This development paves the way for increased inflows and more informed investment decisions, which will positively impact the exchange rate and, by extension, inflation,” he added.
“So while this is undoubtedly positive for Ghana, it is crucial that we proceed with fiscal responsibility,” he cautioned.
