Robert Taliercio
World Bank Country Director for Ghana, Robert Taliercio, has warned against making an early return to international capital markets, indicating that such a move could undermine the country’s recent economic recovery.
Speaking at the launch of the World Bank’s Public Finance Review report, titled “Building the Foundations for a Resilient and Equitable Fiscal Policy,”
Robert Taliercio, emphasized that an early return to IMF could send negative signals to investors, which will lead to a reversal of gains made under Ghana’s debt restructuring efforts and expose the nation to unsustainable borrowing costs.
His warning follows Ghana’s successful restructuring of both domestic and external debts, which secured significant relief under the $3 billion IMF Extended Credit Facility (ECF) programme.
Again, Mr. Taliercio cautioned the government against self satisfaction, noting that Ghana has had a history of falling back into unsustainable financial practices.
He said, “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 further stressed that going back to international markets for dollar funding could be counter-productive, potentially triggering a return to high borrowing costs and renewed financial instability.
He advised that since the country is eager to regain investor confidence, the World Bank warns that timing and budget discipline will be critical in ensuring long-term economic stability.
Since 2022, Ghana has been locked out of international capital markets due to soaring debt levels, stagnant economic growth, and a weak balance of payments.
By Florence Asamoah Adom