The International Monetary Fund (IMF) has warned that Ghana is still a high risk of debt distress economy.
Head of the IMF mission to Ghana Joel Bernante gave the warning in an interaction with journalists ahead of the official release of its staff report sent to its Executive Board requesting it to pass Ghana’s performance under the third review of the program.
Joel Bernante, in a skype conversation with journalists from Washington, advised government to remain cautious about its borrowing in reaction to comments made by Finance Minister Seth Terkper that Ghana will continue to resort to the Eurobond market.
Joel Bernante said Ghana’s risk of debt distress economy remains high under the updated debt sustainability analysis (DSA) with two relevant debt indicators breaching the thresholds under the baseline.
The IMF is also projecting that Ghana will end the year with a debt to GDP ratio of 68 percent from 72 percent in 2015.
The firm also revised the end of year fiscal deficit target from 4.5 percent to around 5 percent on account of weak revenue performance due to dwindling commodity prices on the world market.
The IMF said Ghana will need to institute more structural reforms to make the overall business environment more convenient.
The Fund recently approved the third tranche of 116 million dollars to help in the country’s continuing recovery
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