Ghana’s debt distress rating has been upgraded from high risk to moderate risk, marking the first improvement in the country’s debt-risk classification in 13 years, according to the International Monetary Fund (IMF).
The IMF Resident Representative to Ghana, Dr Adrian Alter, described the development as a major achievement for the country. He said the latest Debt Sustainability Analysis showed significant improvements in Ghana’s debt indicators, with the upgrade coming earlier than initially expected.
The IMF’s assessment shows that Ghana’s central government public debt has fallen to about 45% of GDP, while the country’s key debt sustainability indicators have moved below the required thresholds. The Fund attributed the improvement to stronger macroeconomic stability, debt restructuring and fiscal reforms.
Despite the positive development, the IMF has cautioned Ghana to maintain fiscal discipline and continue reducing borrowing and interest costs. Dr Alter noted that interest payments currently consume a significant portion of government expenditure, limiting the resources available for development and social programmes.
The Fund has also urged the government to strengthen domestic revenue mobilisation while creating more room for the private sector to access credit and drive job creation. The IMF says sustained implementation of reforms will be important to preserve Ghana’s improved debt position.
