Fitch’s Liquidity Challenges Projection for Ghana Inaccurate – Dr Assibey-Yeboah
Former Chairman of the Parliamentary Finance Committee, Dr. Mark Assibey-Yeboah, has dismissed Fitch Ratings’ warnings of liquidity challenges for Ghana in 2025 and 2026 as inaccurate.
Speaking on Joy News’ PM Express on November 27, 2024, Dr. Assibey-Yeboah argued that Fitch’s analysis overlooks critical developments, such as the debt savings from Ghana’s external debt restructuring.
“We are actually going to get some savings from the external debt restructuring, which will provide us with some fiscal space, and so that account is not entirely accurate,” he said, referencing the estimated $8 billion in debt relief.
Fitch Ratings has stated that Ghana will face persistent liquidity challenges in 2025 and 2026, despite its progress in external debt restructuring.
The UK-based credit rating agency projects that the country’s interest-to-revenue ratio will remain exceptionally high, reaching 29% in 2025 and 30% in 2026—nearly double the emerging market average of 16%.
Thomas Garreau, Associate Director of EMEA Sovereign Ratings at Fitch, stressed the need for urgent fiscal reforms.
“We do consider that Ghana will still face significant liquidity pressures,” he said, adding that despite Ghana’s strides in fiscal consolidation, such as a 4.6 percentage-point primary fiscal adjustment between 2022 and 2024, further drastic measures are needed.
Meanwhile, Fitch has projected Ghana’s exit from sovereign default by July 2025, contingent on completing external debt restructuring by June 2025.
While this signals a potential recovery, the agency cautioned that sustained fiscal discipline and comprehensive economic strategies will be essential to mitigate liquidity risks.
The divergence in views between Ghanaian officials and Fitch Ratings underscores the complexities of navigating the country’s economic recovery, as stakeholders debate the extent of fiscal progress and the measures needed to ensure long-term stability.
