After selling $2 billion of Eurobonds, Ghana will prioritize lowering its interest burden and raising revenue to make sure it can continue to service debt, said Finance Minister Ken Ofori-Atta.
Read more: Ghana sells $2 billion Eurobonds as bids exceed supply fourfold
“What we are focused on is debt sustainability,” Ofori-Atta said Friday in an interview in the capital, Accra. “Interest charges as a percentage of revenue becomes our core working targets.”
While the 2018 budget forecast shows that Ghana targets lowering its interest burden to 23 percent of revenue in 2020 from 29 percent this year as income increases 38 percent, the IMF cautioned the country in March that it needs to shake up collections to meet these goals.
Since then, the government continued with plans to roll out tax-registration numbers, along with a new national identification system and an address database to make “it easy for Ghanaians to file their taxes,” Ofori-Atta said.
Improve Rating
The focus on improving fiscal management will help Ghana to better its credit rating and pay a lower coupon on its bonds, he said. Finalizing a planned overhaul of economic data by June will also improve the country’s ratio of debt to gross domestic product, which measured 69.8 percent at the end of 2017, according to central bank data statistics.
“We want to really move much faster to improve our ratings to double B’s and triple B’s to get better rates,” said Ofori-Atta.
Thursday’s Eurobond sale was four times oversubscribed as the nation placed $1 billion of 10-year bonds at 7.627 percent and 30-year debt at 8.627 percent even amid turbulence in emerging markets from Argentina to Turkey.
“The success of the bond is testament that the work we are doing” is paying off, said Ofori-Atta. It also “poses the responsibility of continuing the gains in an irreversible way,” he said.
Latest Stories
-
London ’24: Seb Haller has already swung one final this year. He’s ready to do it again
40 mins -
Should the next government join BRICS? – Yaw Nsarkoh answers
1 hour -
LIFE LOUNGE with Edem Knight-Tay: Who are you Prioritising?
3 hours -
25th TGMAs: Artiste of the Year category is a ‘3-horse race’ – Nana Poku Ashis
4 hours -
Minaj in racism row with police over drugs arrest
6 hours -
Tyson’s fight v Paul postponed on medical advice
7 hours -
ANC looks set to share power after historic election loss
7 hours -
Michelle Obama’s mother, Marian Robinson, dies at 86
7 hours -
Zverev’s domestic abuse appeal hearing begins
7 hours -
‘I’m feeling like myself now’ – Alcaraz cruises through
7 hours -
Murray loses alongside Evans on French Open farewell
7 hours -
EC captures over 22,000 new voters in Western North Region
10 hours -
Menstrual health education is important- Adelaide Ntim
10 hours -
Enforce laws on women empowerment and gender equality in academia – African Leaders urged
10 hours -
Andre Ayew’s days as a Black Star are numbered, but Otto Addo is counting wrong
10 hours