A Professor of Finance at the University of Ghana Business School, Godfred Bokpin, has highlighted the critical need for Ghana to adopt a long-term fiscal sustainability plan since the country's bilateral creditors have agreed to extend loan repayment.
According to him, although the delayed loan repayment does not absolve Ghana of its debt obligations, it is the temporary fiscal relief needed.
“Ghana needs to have a long-term plan in terms of a fiscal sustainability path and have more discipline because, at the end of the day, we're going to pay the debt; it is not like it has been canceled," he said on JoyNews’ PM Express.
Drawing parallels with the debt relief initiatives in 2004 through the Highly Indebted Poor Countries (HIPC) programme and the Multilateral Debt Initiative in 2006, Professor Bokpin urged authorities to reflect on the significant time that has elapsed since those initiatives and the current scenario.
He noted that despite past debt relief efforts, Ghana finds itself grappling with similar challenges today.
"The fact that we're not paying our external debt now means that funds will be available to us. How do we spend it? What will be the level of efficiency? And we should all be interested," he told host Evans Mensah on Tuesday on PM Express.
He stressed the importance of judiciously utilising the resources made available through the loan repayment delay.
Ghana's bilateral creditors recently agreed to postpone loan repayments by an additional four years, providing a temporary respite for the nation.
However, Professor Bokpin noted that this respite should not lead to complacency but rather be viewed as an opportunity for the country to implement effective and sustainable fiscal policies.
Latest Stories
-
Alexander Djiku scores in Fenerbahce’s big win over Kayserispor
16 mins -
Ghana to lobby AU for intercontinental initiative on reparations – Akufo-Addo
32 mins -
African Anti-corruption agencies embrace Bawumia’s call for technology use in corruption fight
1 hour -
See the regional breakdown of ongoing limited registration so far
1 hour -
Ghana’s EOCO Boss now Chairperson of Anti-Corruption Agencies in Commonwealth Africa
1 hour -
Risk of stronger US dollar could affect Emerging Markets credit momentum – Fitch
1 hour -
T-bills auction: Government secures nearly GH¢5bn; interest rates fall again
1 hour -
Hindsight: Asante Kotoko’s 25 years under Otumfuo Osei Tutu II
2 hours -
Limited voter registration: 3 police officers interdicted for failure to execute their duties
2 hours -
Fidelity Bank clarifies issues raised by KMA regarding redevelopment of the KMA-Krofrom Market Project
2 hours -
‘Demonstrate confidence in your homeland by investing in its future’ – Asantehene to entrepreneurs
2 hours -
NDC raises concerns over reported voter registration figures by EC
2 hours -
2 dead after taxi rams into truck on Juapong road
3 hours -
Cold lava sweeps villages near volcano, killing 37
3 hours -
Man behind viral ‘dress that broke the internet’ confesses to strangling his wife
3 hours