Ghana, Belgium sign €163m debt restructuring agreement

Finance Minister Dr. Cassiel Ato Baah Forson has revealed that Ghana has reached an agreement with Belgium to restructure €163 million in debt owed to Belgium’s export credit agency.

The agreement forms part of Ghana’s broader debt restructuring programme, which was initiated to restore debt sustainability, ease pressure on public finances and create room for economic recovery.

In a video cited on his Facebook page, Dr. Ato Forson said the latest agreement would help reduce the resources committed to debt servicing and allow government to channel more funds into critical sectors.

According to him, the significance of the deal goes beyond the financial figures, as its impact will ultimately be felt by ordinary Ghanaians through increased investment in public services.

“This particular agreement is important because debt restructuring is not always about just the numbers. It has to do with the people of Ghana and our citizens,” he said.

Dr. Ato Forson explained that the restructuring would ease pressure on the national budget and create room for increased investment in healthcare, education, roads and other social infrastructure.

“It means less pressure on the national budget. And obviously, the people of Ghana will have an opportunity to experience more healthcare because we are reducing the amount we use to service the debt,” he said.

He said Ghana had previously reached a point where about 55% of national revenue was being used to service debt, leaving limited resources for public services.

“And when you are confronted with a situation like that, then it means that, clearly, you won’t have an opportunity to take care of public goods. Public services will be the ones that will suffer. Less schools, less hospitals, and less social care,” he stated.

Dr. Ato Forson said the country had since made significant progress, with debt servicing now accounting for less than 20% of total government revenue.

“And so, today, I’m proud to say that we have made some considerable progress. Today, we are spending less than 20% of our total revenue to service our debt,” he said.

He noted that the latest agreement brings Ghana closer to completing its debt restructuring programme, while helping restore confidence and secure a more stable economic future.

“What I want to also say is that, with this agreement, Ghana moves closer to completing the debt restructuring. Restoring confidence and securing a more stable economic future for our people,” he said.

Dr. Ato Forson expressed appreciation to the Belgian government for agreeing to restructure the €163 million debt and said Ghana was taking steps to ensure it does not return to an unsustainable debt position.

“We largely want to ensure that the fiscal rules that we have instituted today are enshrined in law. So that, even if this government is not there, the next government will have to make sure that these fiscal rules are respected,” he said.