Ghana has secured a €163 million debt restructuring agreement with Belgium, bringing the country closer to completing its broader debt restructuring programme, Finance Minister Dr Cassiel Ato Forson has announced.

Speaking after the signing of the agreement, Dr Ato Forson said the deal was significant not only because of the financial figures involved but also because of its potential impact on the lives of Ghanaians.

He explained that debt restructuring would reduce pressure on the national budget and allow more government resources to be directed towards essential public services and infrastructure.

“This particular agreement is important because debt restructuring is not always about just the numbers. It has to do with our citizens. It means less pressure on the national budget,” he said.

According to the finance minister, the reduced debt-servicing burden would create room for greater investment in healthcare, education, roads and other social infrastructure.

“The people of Ghana will have an opportunity to experience more healthcare because we are reducing the amount we use to service the debt. The people of Ghana will be able to see more schools, more roads, and more social infrastructure,” he said.

Dr Ato Forson said the agreement would enable Ghana to redirect more of its national resources towards improving living conditions rather than servicing unsustainable debt.

He recalled that Ghana had reached a point where about 55% of national revenue was being used to service debt, leaving the country with limited resources to provide public goods and services.

“When you are confronted with a situation like that, then it means that clearly you won’t have the opportunity to take care of public goods. Public services will be the ones that will suffer. Less schools, less hospitals,” he said.

The Finance Minister said Ghana had now made considerable progress in dealing with its debt challenges.

He described the latest agreement as an important milestone that would help restore confidence in the Ghanaian economy and contribute to a more stable economic future.

“With this agreement, Ghana moves closer to completing the debt restructure, restoring confidence and securing a more stable economic future for our people,” he said.

Appreciation to Belgium

Dr Ato Forson expressed appreciation to the Belgian government for its cooperation and for agreeing to restructure the €163 million debt.

He said the agreement forms part of the government’s wider efforts to restore fiscal stability and reduce the burden of debt servicing on the national budget.

The Finance Minister also said government was taking steps to prevent Ghana from returning to unsustainable debt levels.

He disclosed that fiscal rules introduced by the government would be enshrined in law to ensure that future administrations maintain fiscal discipline.

“We want to ensure that the fiscal rules that we have instituted today are enshrined in law so that even if this government is not there, the next government will have to make sure that these fiscal rules are respected,” he said.