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The World Bank Country Director for Ghana, Liberia, and Sierra Leone, Robert Taliercio, has cautioned Ghana against hastily re-entering international capital markets, describing such a move as premature and potentially risky.
Speaking at the launch of the World Bank’s latest Public Finance Review report, titled Building the Foundations for a Resilient and Equitable Fiscal Policy, Taliercio emphasised that an early return could send the wrong signal to investors, potentially reversing the progress made under Ghana’s debt restructuring efforts and exposing the country to unsustainable borrowing costs.
His warning follows Ghana’s successful restructuring of both domestic and external debts, which secured significant relief under the $3 billion IMF Extended Credit Facility (ECF) program.
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“The risk now is falling into complacency with these achievements and returning to a business-as-usual mindset—a recurring error in the past. Ghana has requested a record of 17 IMF programs. As a result, the country has been under active IMF programs for 40 out of 68 years of its history,” Taliercio explained.
He further stressed that “a premature return to international capital markets could send the wrong signal to markets and a reversal to unsustainable borrowing costs.”
Since 2022, Ghana has been effectively locked out of international capital markets for dollar funding due to high debt levels, sluggish economic growth, and a weak balance of payments. As the country navigates its economic recovery, the World Bank’s caution serves as a reminder of the risks associated with premature borrowing in volatile financial markets.
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