By Ghana News
Copyright ghanamma
The World Bank has advised Ghana to resist a quick return to the Eurobond market, warning that such a move would send the wrong signal to investors and risk undermining efforts to restore credibility.
In its recent policy notes and assessment of the Ghanaian economy, the bank emphasised that Ghana’s recovery hinges on discipline, transparency, and politically challenging reforms, and not on new external borrowing.
“Refrain from a hasty return to the Eurobond market, which investors would interpret as taking the easy way out. Instead, the government should focus on fiscal and growth fundamentals, while reassuring the private sector that public debt is on a sustainable path,” the report cautioned.
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The bank further said that rebuilding investor confidence requires strict adherence to the Medium-Term Debt Management Strategy and full disclosure of the Annual Borrowing Plan.
It urged the administration of President John Mahama to seize its post-election honeymoon to push through tough reforms that will lay the foundation for lasting stability.
The report noted that the country has entered 17 IMF programmes in the past 68 years, with nearly 40 of those years spent under active fund supervision.
The World Bank argued that these repeated bailouts reflect a history of fiscal indiscipline, excessive borrowing, and poor financial management.
The World Bank also dismissed the idea that recent crises were caused primarily by global shocks, pointing instead to years of unsustainable borrowing and delayed reforms.
It said; “easy access to Eurobonds, fuelled short-term political decisions that left the economy vulnerable.”
While Ghana has undergone debt restructuring and secured IMF support, the bank warned the country is not yet out of danger.
“Reestablishing credibility will take time, but the process can start immediately,” it emphasised.
Speaking at an earlier media engagement, President John Dramani Mahama echoed similar sentiments, noting that Ghana has managed without international borrowing and pledged to avoid a hasty return to external markets.
“We’ve survived without going to the capital markets, and as President, I would not favour an early return. The priority should be consolidating the economy before considering external financing,” Mahama said.
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