Ghana faces debt repayment crisis in 2027 and 2028 after IMF restructuring - Ato Forson

Ghana faces a looming debt repayment crisis in 2027 and 2028, following the terms of the IMF-supported debt restructuring programme.

According to Dr Forson, Ghana’s domestic and external debt service obligations will peak in those years, putting severe pressure on the economy.

“In 2027 alone, we will need to pay GH¢57.6 billion, and in 2028, another GH¢52.5 billion will be due. This presents a major risk to Ghana’s fiscal stability,” he told Parliament.

The finance minister attributed the situation to decisions made under the previous administration, stating that the debt restructuring programme was structured in a way that frontloads repayments into 2027 and 2028, limiting the government’s financial flexibility.

“This situation is dangerous, but we are taking steps to manage it. We will engage our creditors and explore ways to handle these obligations without destabilising the economy,” Dr Forson assured.

Beyond the repayment challenge, Ghana’s total public debt has now reached GH¢726.7 billion, with GH¢150.3 billion in domestic debt service due over the next four years.

Dr Forson cautioned that without strict fiscal management and negotiations with creditors, the country could face a severe cash flow crisis in the coming years.

He told Parliament that the government is engaging the IMF and bilateral creditors to review repayment timelines and reduce the financial strain on the economy.