The Bank of Ghana has issued a warning that the ongoing negotiations for the restructuring of Ghana’s external debt may lead to short-term pressures on external payments, which could challenge the stability of the cedi and elevate the country’s future debt servicing responsibilities, even as fiscal performance shows signs of improvement.
In its Monetary Policy Report for May 2026, the central bank indicated that the resolution of the pending debt restructuring discussions could have repercussions for the domestic currency and necessitate enhanced domestic savings to fulfill future external debt service commitments.
The bank emphasized that the continuous accumulation of foreign exchange reserves will be vital for addressing forthcoming external debt payments and maintaining macroeconomic stability.
This cautionary note comes at a time when the Bank has reported positive indicators suggesting that the government’s fiscal consolidation efforts are starting to take effect.
The report highlighted that fiscal objectives were met in the first quarter of 2026, despite worries regarding revenue performance and the speed of expenditure execution.
It observed that revenue collections began to improve in April, following the implementation of new revenue initiatives introduced in the 2026 Budget.
The central bank credited this enhancement to the use of technology and artificial intelligence to address revenue leakages and boost the efficiency of tax administration.
Furthermore, it anticipates stricter expenditure controls as the government broadens its commitment authorization system and puts into action its value-for-money initiative to promote spending discipline.
Despite the positive fiscal outlook, the Bank pointed out that fluctuations in commodity prices and increased geopolitical tensions pose additional risks that could impact the government’s fiscal performance.
It concluded that ongoing fiscal discipline, robust economic growth, reduced real interest rates, and stability in exchange rates are crucial for achieving medium-term debt sustainability.
The report also emphasized the enhancement of public finances. The government achieved an overall budget surplus of GH¢1.709 billion on a commitment basis during the first quarter of 2026, which is equivalent to 0.1 percent of GDP, surpassing the anticipated deficit of GH¢18.578 billion, or 1.2 percent of GDP.
The corresponding primary balance also recorded a surplus of 1.2 percent of GDP, significantly exceeding the target of 0.2 percent.
In the meantime, Finance Minister Dr. Cassiel Ato Forson has aimed to reassure investors that the government has established adequate financial reserves to fulfill upcoming debt obligations.
During Vice President Professor Naana Jane Opoku-Agyemang’s visit to the Ministry of Finance on Thursday, July 9, 2026, he revealed that the government is ready to address approximately GH¢10 billion in debt repayments due in August, along with an estimated GH¢54 billion maturing in 2027.
He further noted that Ghana has already fulfilled around US$1.4 billion in Eurobond repayments this year and is on track to meet all future debt obligations without default.
