The World Bank has issued a stern warning to the Government of Ghana, advising against an early return to the Eurobond market.
The international institution cautioned that such a move could jeopardize Ghana’s credibility and undermine ongoing efforts to restore long-term economic stability.
In its latest assessment of Ghana’s post-crisis recovery, the World Bank stated, “the most positive immediate action the government can take would be to refrain from precipitously re-accessing the Eurobond market.” The report stressed that the ability to borrow again on international markets should not be seen as a sign of restored credibility, but rather as a chance to demonstrate a true commitment to lasting reforms.
The World Bank urged Ghanaian authorities to seize the moment and implement long-overdue structural reforms—particularly in the energy and cocoa sectors—which it described as critical tests for the new administration. Vigorous domestic revenue mobilisation, the Bank said, must be prioritized to achieve sufficient primary fiscal surpluses and put public debt on a sustainable path, reducing reliance on external borrowing.
The report underscored the need for a decisive break from past practices, stating, “There is an urgent need to signal a clear break from the past and a commitment to change. Staying the course is vital for establishing credibility and substantially reducing country risk and borrowing costs, improving investment sentiment among foreign and domestic firms, and supporting a sustained growth recovery and long-lasting job creation.”
Source: Apexnewsgh.com
