The Director of the Institute of Statistical, Social and Economic Research (ISSER), Professor Peter Quartey, has questioned the urgency behind the government’s move to return to the international capital market.
Speaking with the media in Accra on March 14, 2025, Prof. Quartey emphasised the need for a more pragmatic approach to external borrowing, arguing that accumulating debt is unsustainable.
According to him, Ghana’s deficit financing stood at 3.2% of GDP in 2023, with the 2024 figure projected to rise to 5.2% of GDP.
“I want to sound this caution: borrow less from the capital market and at reasonable interest rates. These days, you hear that we want to go to the capital market. After the restructuring, you hear that we are hoping to finish the process soon and be able to return to the capital market.
“But why the rush? That is where we went before, and now we are facing these problems. Yet, we still want to quickly finish giving people a haircut and return to the capital market. I think we should tread cautiously when it comes to borrowing, especially through Eurobonds and other capital market funds.
“They are too expensive and unsustainable. We ought to shy away from them. Instead, let us focus on mobilizing more multilateral and domestic sources of funding because they are cheaper,” Professor Peter Quartey stated.
SSD/MA
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