IMF warns Ghana against Eurobond hype, calls for prudent debt management

The government, in December 2025, settled US$709 million in Eurobonds ahead of schedule, sparking widespread excitements within the business community. And in 2025 alone, the government paid a total of US$1.4 billion to Eurobond holders.

This move was intended to strengthen reforms in domestic revenue mobilisation, public financial management, and public debt management.

However, despite this achievement, the International Monetary Fund (IMF) has expressed concern over the excitement surrounding Ghana's Eurobond issuance, emphasising the importance of a proper debt management framework.

According to the Director of the IMF’s African Department, Abebe Aemro Selassie, while speaking in an interview on Channel One TV, Ghana’s efforts to navigate domestic financing amid global economic challenges are commendable.

He further highlighted a sharp contrast between domestic and external borrowing.

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“When the government issues domestic bonds, it’s fundamentally different. You borrow in your own currency, and as long as you are prudent, that’s fine. But whenever there is Eurobond issuance, the hype is overwhelming!” he said.

He noted that Ghana has been classified as being at high risk of debt distress since 2014.

He cautioned that while certain policies may have contributed to this situation, changes in the external environment have also played a significant role.

“So, what we do is take a comprehensive assessment of policies and the financing related to those policies. This is where our work on debt sustainability comes in,” he added.

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