Ghana now spends less than 20% of revenue on servicing debt– Dr Ato Forson
The Finance Minister made the remarks at the signing of an agreement between the Governments of Ghana and Belgium to restructure debt owed to Belgium’s export credit agency.
Dr Cassiel Ato Forson, Ghana's Minister for Finance, disclosed that the nation now allocates less than 20% of its revenue towards debt servicing, a significant decrease from the previous 50%. This change has allowed the government to direct more resources towards essential services such as education, healthcare, and infrastructure development.
Dr Forson emphasized that the excessive debt-service burden in the past hampered investments in critical areas that are vital for the country's development. He expressed pride in the progress made, stating that Ghana is now spending less than 20% of its revenue on debt servicing. This reduction has created additional fiscal space for the government to invest in public infrastructure and social services, ultimately benefiting the lives of Ghanaians.
The Finance Minister also outlined plans to prevent Ghana from slipping back into an unsustainable debt situation. He assured that the fiscal rules implemented to manage the debt will be legally enshrined, ensuring their enforcement regardless of the ruling government. Dr Forson made these statements during the signing of an agreement between the governments of Ghana and Belgium aimed at restructuring debt owed to Belgium's export credit agency.
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