Ghana now spends less than 20% of our c on servicing debt – Dr Ato Forson
The Minister for Finance, Dr Cassiel Ato Forson, says Ghana now spends less than 20 per cent of its revenue on servicing debt, down from about 50 per cent previously. He said the high debt-service burden in the past left the country with fewer resources to finance schools, hospitals, roads and other critical infrastructure. “At […]
Dr Cassiel Ato Forson, the Minister for Finance of Ghana, has announced that the West African nation now spends less than 20 percent of its revenue on servicing its debt, a significant decrease from the previous 50 percent. Dr Forson revealed that Ghana's excessive debt-service burden in the past forced the country to allocate scarce resources to other critical areas such as education, healthcare, and infrastructure development.
"At its peak, we were spending about 50 percent of our revenue on debt servicing. This meant less money for schools, hospitals, roads and other infrastructure. That was unsustainable," he emphasized. The reduction in debt-servicing costs has allowed the government to generate more fiscal space for the construction of public infrastructure and the provision of social services to improve the lives of Ghanaians.
The Finance Minister also highlighted the government's commitment to preventing the recurrence of unsustainable debt levels by incorporating the established fiscal rules into law, ensuring their enforcement across different administrations. Dr Forson made these remarks at the signing of an agreement between Ghana and Belgium's export credit agency to restructure the debt owed to Belgium.
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