Ghana secures €163 million debt restructuring deal with Belgium

Ghana and Belgium have signed an agreement to restructure €163 million in debt owed to Belgium’s export credit agency, giving the country more fiscal space to spend on healthcare, education, roads and other public services.

Finance Minister Dr Cassiel Ato Forson, said the agreement would reduce pressure on the national budget by cutting the amount of money used to service debt.

“It’s not always about just the numbers. For the people of Ghana and our citizens, it means less pressure on the national budget,” he said.

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Dr Forson mentioned that Ghana previously used about 55% of its national revenue to service debt, leaving less money for schools, hospitals, roads, and other public services.

He noted the situation had improved, with less than 20% of tax revenue now being used to service the country’s debt.

“Today, I’m proud to say that we have made some considerable progress. Today, we are spending less than 20% of our total revenue to service our debt,” he said.

According to him, the reduction means the government can allocate more revenue to improving the lives of Ghanaians rather than spending a large share on debt payments.

He said the agreement with Belgium also brings Ghana closer to completing its debt restructuring programme and would help restore confidence in the economy.

“With this agreement, Ghana moves closer to completing its debt restructuring, restoring confidence, and securing a more stable economic future for our people,” he said.

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Dr Forson also said the government was putting measures in place to prevent Ghana from returning to high and unsustainable debt levels.

He stated that new fiscal rules were being backed by law to ensure that current and future governments manage the country’s finances responsibly.

Ghana now spends less than 20% in revenue on servicing debt - Dr Ato Forson reveals



DR/MA

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