The International Monetary Fund (IMF) has cautioned the Government of Ghana to be prudent in its borrowing practices to avoid repeating the mistakes of the past that led to excessive and high-cost debt accumulation.
Speaking on The Point of View with Bernard Avle on Channel One TV on Monday, November 3, IMF Resident Representative to Ghana, Dr. Adrian Alter, advised the government to prioritize concessional financing and maintain a balanced borrowing strategy under the ongoing IMF-supported programme.
“On the borrowing side, we have advised the government to be extremely prudent—not to go back to the same mistakes of excessive and expensive borrowing in the past,” Dr. Alter stressed.
He explained that Ghana should rely more on low-interest loans from multilateral institutions such as the World Bank, the African Development Bank, and the IMF, rather than returning to international capital markets where borrowing costs remain significantly high.
“When you have available concessional financing from multilateral agencies like the World Bank, the African Development Bank, and the IMF loan on concessional terms, you shouldn’t go to the international market where the interest rates are currently extremely pricy,” he cautioned.
Dr. Alter noted that although global financial conditions have slightly improved, interest rates remain elevated. Given Ghana’s current credit rating, he warned that any new borrowing from international markets could attract rates as high as 10 percent or more.
He further explained that the IMF programme sets clear limits on external borrowing to ensure debt sustainability and adherence to creditor agreements.
“The government has a mix of about 70 percent domestic versus 30 percent external borrowing,” Dr. Alter revealed, adding that the Fund is working closely with authorities to extend the maturity of domestic debt instruments beyond the current one-year average.
The IMF official expressed optimism that by early 2026, Ghana’s domestic bond market could reopen under more favourable conditions, paving the way for a stable and diversified financing environment.
The IMF continues to monitor Ghana’s progress under the Extended Credit Facility (ECF) programme, which aims to restore macroeconomic stability, strengthen debt sustainability, and support inclusive economic growth.
