Robert Taliercio, the World Bank Country Director for Ghana, Liberia, and Sierra Leone, has cautioned Ghana against hastily re-entering international capital markets, warning that doing so could be premature and financially risky.
Speaking at the launch of the World Bank’s latest Public Finance Review report, Building the Foundations for a Resilient and Equitable Fiscal Policy, Taliercio emphasized that an early return to the markets could erode investor confidence and undo the progress made under Ghana’s recent debt restructuring efforts. He noted that such a move could also lead to unsustainable borrowing costs, jeopardizing the country’s financial stability.
Following the successful restructuring of its domestic and external debts under the $3 billion IMF Extended Credit Facility (ECF) programme, Ghana has managed to secure significant financial relief. However, Taliercio warned against complacency, urging authorities to avoid repeating past mistakes.
“The real danger now is slipping back into old habits and returning to a ‘business-as-usual’ approach—a recurring issue in Ghana’s economic history. The country has entered a record 17 IMF programs and has spent 40 out of its 68 years under active IMF supervision,” he remarked.
He further stressed that rushing back to international capital markets could send negative signals to investors, making borrowing even more expensive and unsustainable.
Since 2022, Ghana has been unable to access international capital markets for dollar-denominated loans due to high debt levels, sluggish economic growth, and a weak balance of payments. The World Bank’s advice underscores the need for careful financial planning to sustain economic recovery and prevent future fiscal crises.
SOURCE: http://dew360.net
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