Fitch Warns of Persistent Liquidity Pressures for Ghana Despite Debt Restructuring Progress
Despite progress in restructuring its debt, Fitch Ratings has cautioned that Ghana will encounter significant liquidity challenges in 2025 and 2026.
The UK-based ratings agency highlighted that the country’s interest rate to revenue ratio will remain among the highest for the sovereign nations it rates.
According to Fitch, Ghana’s interest rate revenue ratio is projected to reach 29% in 2025 and 30% in 2026 – nearly double the emerging market average of 16%.
Thomas Garreau, Associate Director of Europe, Middle East, and Africa Sovereign Ratings at Fitch, emphasized the urgency of adopting drastic fiscal measures to address the situation.
“We do consider that Ghana will still face significant liquidity pressures,” he stated. “The interest rate will still be among one of the highest, at approximately 30%—almost twice the emerging markets rate of 16%. This represents quite some significant liquidity pressures.”
Mr Garreau acknowledged the substantial fiscal consolidation efforts Ghana has undertaken, noting a 4.6 percentage-point primary fiscal adjustment between 2022 and 2024.
Fitch has also projected to move Ghana out of sovereign default by July 2025, conditional on the country successfully completing its external debt restructuring by the end of June 2025.
The outlook underscores the need for sustained fiscal discipline and robust economic strategies to navigate the prevailing liquidity constraints.
