President John Mahama has disclosed that in the next four years, debt servicing will amount to GHS280 billion, which comprise GHS150 billion for domestic and GHS130 billion in external debt servicing. He lamented that the debt position has also severely impacted infrastructure projects that should have been completed.
Addressing Parliament on the State of the Nation (#SONA2025) on Thursday, February 27, 2025, the President stated that there are fifty-five (55) stalled projects due to the default of debt and subsequent restructuring, with a total amount of US$ 2.95 billion not disbursed.
He indicated the stalling of these projects is expected to result in a cost overrun of about GHS 15 billion.
“Notwithstanding this gloomy background, I remain committed to leading this government, taking every necessary step to reset our economy, getting things back on track, and working with the good people of our country to build the Ghana we want” he assured.
Mr. Mahama further promised to implement corrective measures through the budget to restore fiscal discipline and debt sustainability.
“We are doubling our efforts to complete all outstanding structural reforms. Through the budget, we will implement corrective measures to restore fiscal discipline and debt sustainability.”
The President said his government was also working towards completing the upcoming fourth review of the IMF-supported Programme.
“The review is scheduled from April 2nd to April 15th, 2025, and the IMF Executive Board is expected to approve it in June 2025” he announced.
“As we have done previously, we are also building buffers in the Sinking Fund and adopting prudent debt management practices to ensure prompt repayment of upcoming domestic and external debt maturities” he stressed.
