Mahama Rules Out Quick Return to Capital Markets for Loans: “We’ve Survived Without Borrowing”
- President John Mahama said he is against a quick return to the international capital markets to borrow
- The president touted economic reforms that have seen the government rein in spending and turn around economic indicators
- Ghana has been locked out of international capital markets since its sovereign debt default in 2022
President John Mahama has ruled out a quick return to the international capital markets to borrow.
During a meeting with the press, the president noted the fiscal discipline his government had shown in its first nine months.
Source: Facebook
Mahama said the administration was happy with economic reforms that have seen the government rein in spending and push funds to priority areas.
"It’s all about discipline in expenditure, and so for me, as the president, I would not favour a quick return to the international capital market(s)."
“I think we should go like this for a while and consolidate the economy before we look at external financing."
Ghana has been locked out of international capital markets since its sovereign debt default in 2022, amid ballooning debt.
This forced the country to rely heavily on domestic revenue mobilisation, multilateral support and fiscal adjustments.
The government also had to turn to the International Monetary Fund (IMF) for a bailout.
As part of the conditions for the bailout, it was supposed to restructure both its domestic and external debts starting in 2023.
Ghana's history on the Eurobond market
The Eurobond market was a consistent source of revenue for the government in recent years.
Ghana went on to the Eurobond market in 2007 and has borrowed nine times, amounting to US$15.615 billion
GhanaFact has noted that the country issued its first Eurobond of US$750 million in 2007 under the Kufuor administration.
Between 2013 and 2016, under the first Mahama regime, it issued a total amount of US$3.84 billion in Eurobonds.
This was followed by US$11.025 billion from 2018 to 2021 under the Akufo-Addo administration.
The outstanding Eurobond debt is US$13.103 billion, which has now been restructured.
Mahama touts achievements
During the engagement, Mahama touted the achievements of his administration barely eight months into office during his maiden engagement with the press at the Jubilee House.
He spoke on the gains in sectors ranging from education to agriculture.
Source: Getty Images
Touching on the power and energy sector, the president said his administration had managed to avert the intermittent power outages, popularly known as Dumsor, which was a major concern when his administration assumed office on January 7, 2025.
According to the president, his administration was able to stabilise the power sector through strategic interventions.
IMF approves $367m disbursement to Ghana
In July, YEN.com.gh reported that the International Monetary Fund approved the disbursement of about $367 million to Ghana after its latest review.
The new funding brought the total disbursements under the Extended Credit Facility arrangement to around $2.3 billion.
Finance Minister Dr. Cassiel Ato Forson hailed the update as being key to Ghana's strategic economic transformation.
Proofreading by Samuel Gitonga, copy editor at YEN.com.gh.
Source: YEN.com.gh
