The World Bank Country Director for Ghana, Liberia, and Sierra Leone, Robert Taliercio, has advised Ghana to tread cautiously in any attempt to return to international capital markets.
He warned this mature move could have serious implications for the country.
He said that the move could undermine the country’s recent economic recovery.
He issued the caution while speaking at the launch of the World Bank’s latest Public Finance Review report, titled “Building the Foundations for a Resilient and Equitable Fiscal Policy”.
He averred that an early return could send negative signals to investors, a situation that could reverse all the positive gains made under Ghana’s debt restructuring program.
Robert Taliercio added that the move could also expose Ghana to unsustainable borrowing costs.
“The risk now is falling into complacency with these achievements and returning to a business-as-usual mindset—a recurring error in the past. Ghana has requested a record 17 IMF programs and has been under active IMF supervision for 40 out of its 68 years of independence,” he noted.
The World Bank official added that rushing back to international markets for dollar funding could be counterproductive and will trigger a return to high borrowing costs and renewed financial instability.
Meanwhile, the report by the World Bank has advised Ghana to reset its fiscal strategy by boosting domestic revenue, rationalising tax exemptions, and enforcing stricter expenditure controls.
The bank said in order for the country to achieve long-term stability, policymakers must curb non-essential spending, strengthen public financial management, and adopt a more disciplined fiscal framework to restore economic confidence and attract sustainable investments.
By: Rainbowradioonline.com/Ghana
