Ghana’s debt situation has improved, with its risk of debt distress downgraded from high to moderate for the first time in 13 years, according to the IMF Resident Representative in Ghana, Dr Adrian Alter.
Speaking on Channel One TV on August 24, 2026, Dr Alter said the upgrade reflects improvements across key debt and macroeconomic indicators.
“The Debt Sustainability Analysis based on the IMF showed that the rating has been upgraded from high risk of debt distress to moderate risk of debt distress. And this is the first time after 13 years. So it’s a huge achievement,” he stated.
He noted that Ghana’s public debt has declined to about 45% of GDP, placing the country within its medium‑term debt target of 45% by 2034.
The improvement, he explained, gives government room to focus on critical areas such as infrastructure, salaries, and social spending.
However, Dr Alter cautioned that government must reduce financing costs to create more fiscal space for development.
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He stressed that increasing capital expenditure would require mobilising more domestic revenue and securing financing without crowding out the private sector.
He warned that excessive government borrowing from the domestic market could limit access to funds for private businesses.
“What the government needs to do is basically to lower those costs to make space, fiscal space, for other development needs to pay salaries and for social spending,” he noted.
Dr Alter further said, “The government basically competes with the private sector, and that’s where we hope the growth will be led from. The private sector should be the one creating jobs and boosting the growth.”
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Recent data showing a 40% year‑on‑year rise in private‑sector credit was described as encouraging.
Dr Alter indicated that maintaining debt gains will require balancing government financing needs with ensuring businesses have adequate access to credit to drive investment, job creation, and economic growth.
'The rating has been upgraded from high risk of debt distress to moderate risk of debt distress. And this is the first time in 13 years, so it’s a huge achievement.' — Dr Adrian Alter, IMF Resident Representative to Ghana, on The Point of View. He says Ghana’s debt… pic.twitter.com/hXdXxRhuUE
— CITI FM 97.3 (@Citi973) August 24, 2026 DR/SASource: www.ghanaweb.com