We won’t rush to Eurobond market - Finance Minister

Ghana's government will exercise caution and avoid rushing back to the international capital market for borrowing, despite a more favorable economic climate. Finance Minister Dr. Cassiel Ato Forson emphasized that debt sustainability remains the priority over seeking new external loans, even with improved sovereign ratings and increased investor confidence.

Speaking during the presentation of the 2026 Mid-Year Budget Review in Parliament, Dr. Forson highlighted Ghana's significant strides in restoring fiscal stability following the 2022 debt crisis. He noted a stark contrast to three years prior when Ghana struggled to borrow internationally, stating, "Today, the market is inviting us back. But we are not in a hurry."

The minister reported that Ghana's debt-to-GDP ratio has fallen to 45 percent, surpassing the statutory target ahead of schedule and earlier than anticipated under the International Monetary Fund (IMF) program. A recent joint World Bank-IMF Debt Sustainability Analysis upgraded Ghana's outlook from unsustainable to sustainable, improving its risk of debt distress from high to moderate.

Prudent fiscal management has also led to reduced borrowing costs, saving the country GH¢4.2 billion in interest payments in the first half of the year. Lower treasury bill rates and government bond yields are easing borrowing costs for businesses and households, fostering investment and job creation. Ghana has successfully returned to the domestic long-term bond market, raising GH¢2.7 billion through its first seven-year Cedi-denominated bond since the 2022 Domestic Debt Exchange Program. However, significant debt obligations loom, with GH¢58 billion in DDEP bonds maturing in 2027 and GH¢53 billion in 2028. To manage these, the government will allocate seven percent of non-oil tax revenue and bond issuance proceeds to debt servicing under its Medium-Term Debt Management Strategy.

Furthermore, the removal of several taxes, including the E-Levy and Betting Tax, has not negatively impacted revenue. Non-oil tax revenue actually increased from 12.6 percent of GDP in 2024 to 13.1 percent in 2025, despite these tax changes and the absence of new tax introductions.

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Today, the market is inviting us back. But we are not in a hurry.