Economist Dr. Adu Owusu Sarkodie has expressed optimism that Ghana is on track to reach a debt restructuring agreement with Chinese commercial creditors by the end of 2025, provided the government maintains fiscal discipline and continues with current economic reforms.
Speaking to Joy Business, Dr. Sarkodie emphasized the importance of the government’s commitment to fiscal consolidation and prudent spending in order to maintain investor confidence and position the country favorably for negotiations.
“There is a good possibility that if we stay the course, avoid wasteful expenditure, and stick to the fiscal targets, Ghana could successfully secure a debt restructuring deal with Chinese creditors before the year ends,” he explained.
He stressed that the conduct of the government during this period is crucial, as creditor confidence largely depends on Ghana’s ability to demonstrate financial responsibility and a clear path to debt sustainability.
The debt restructuring process is a critical component of Ghana’s broader efforts to stabilize the economy, following challenges such as high debt servicing costs, currency depreciation, and inflationary pressures.
Securing a favorable deal with Chinese commercial creditors, who hold a significant portion of Ghana’s external debt, is expected to ease the country’s debt burden and create space for economic recovery and growth.
Ghana is already engaged in debt restructuring talks with other international creditors under the G20 Common Framework and has been working towards restoring macroeconomic stability.
Dr. Owusu Sarkodie concluded by urging policymakers to avoid excessive borrowing during this period, noting that any reckless fiscal decisions could derail progress and delay much-needed debt relief.
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