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The World Financial institution is warning that poorly performing State-Owned Enterprises (SOEs), particularly in power and agriculture, proceed to pose fiscal dangers to the nation’s financial stability.
It’s due to this fact calling for pressing reforms and strengthened oversight to make sure long-term stability and monetary sustainability.
In its newest evaluation of the Ghanaian financial system, the Bretton Woods establishment stated structural challenges persist.
It expressed fear that Ghana’s tax-to-Gross Home Product (GDP) ratio averaged 12.5% (2020–2024), under regional friends, attributable to VAT exemptions, evasion, and underutilised extractive trade revenues.
It continued that the fiscal consolidation programme confronted setbacks in 2024 attributable to election-related spending and arrears, however improved markedly in early 2025 via sturdy expenditure restraint and new fiscal guidelines.
“Expenditure overruns led to fiscal slippages in 2024, however H1 [half-year] 2025 noticed improved fiscal self-discipline pushed by spending restraint and new fiscal guidelines”.
Public Debt
On debt, it identified that Ghana’s public debt is assessed as sustainable within the medium time period, contingent on finishing exterior debt restructuring and sustaining sturdy fiscal self-discipline.
It added that Ghana’s complete debt restructuring is nearing completion with a Memorandum of Understanding (MoU) signed with the Official Collectors Committee in January 2025, Eurobond trade finalised in October 2024, and negotiations with remaining industrial collectors underway consistent with Worldwide Financial Fund programme parameters.
The federal government’s complete debt restructuring technique coated home, bilateral, Eurobond, and industrial creditor claims, with tailor-made options for every creditor group and ongoing negotiations for the remaining exterior debt.
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DISCLAIMER: The Views, Feedback, Opinions, Contributions and Statements made by Readers and Contributors on this platform don’t essentially signify the views or coverage of Multimedia Group Restricted.
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