Ghana’s Finance Minister, Cassiel Ato Baah Forson, has warned that the country faces significant external debt servicing costs over the next four years.
Speaking in his first budget presentation to parliament on Tuesday, Forson revealed that Ghana will need to pay $2.5 billion in 2027 and $2.4 billion in 2028, amounting to a total of $8.7 billion (10.9% of GDP) within the period. He also noted that no financial buffers had been put in place to ease the burden.
Ghana is recovering from its worst economic crisis in decades, triggered by the COVID-19 pandemic, the war in Ukraine, rising global interest rates, and years of excessive borrowing.
Meanwhile, President John Dramani Mahama, who assumed office in January, has pledged to revive the economy and create jobs while addressing challenges such as high living costs, an ongoing IMF bailout, and a sovereign debt default in the country’s cocoa and gold sectors.
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