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Ghana to pay GHC180bn next year in debt servicing

Ghana is set to allocate a staggering GHC180 billion to debt servicing in 2026, an amount nearly equal to the country’s entire budget, according to Felix Kwakye Ofosu, Spokesperson for President John Dramani Mahama and Minister-designate for Government Communications.
 
Speaking on TV3’s The KeyPoints on Saturday, Kwakye Ofosu detailed the country’s looming fiscal challenges, attributing them to excessive borrowing and poor financial management by the previous administration.
 
“At the end of February, we are required to pay GHC6.1 billion in debt servicing,” he disclosed. “Next year, we have to pay GHC180 billion in debt servicing. This is for a country whose budget is slightly above GHC200 billion,” he emphasized, painting a grim picture of Ghana’s economic future.
 
He further revealed that earlier in January 2025, the government had to make a $364 million payment for debt servicing, a move that was only possible through additional borrowing.
 
“What it means is that all the taxes you and I pay, everything else we do in this country that goes into our budget, all of it would be used to pay debt servicing because of the debt default and deferment,” Kwakye Ofosu explained.
 
Warning of severe economic consequences, he stated, “If we don’t [meet these obligations], we will default, and it will be catastrophic. It will be the end of our economy as we know it.”
 
Kwakye Ofosu also criticized the previous administration for failing to manage the debt effectively, remarking, “The previous government was too happy to borrow but didn’t have the capacity to pay.”
 
In response to the mounting fiscal pressures, President Mahama has called on newly appointed Finance Minister Dr. Cassiel Ato Forson to urgently address the country’s economic challenges.
 
Swearing in the minister at a ceremony at the Jubilee House, President Mahama outlined key priorities, including reducing inflation, cutting the cost of living, and stabilizing the cedi.
 
“The people of Ghana are looking up to you to reduce inflation, make life affordable, reduce the cost of living,” the president said.
 
“Ghanaians are looking up to you to bring our national debt to sustainable levels and to stabilize our currency so that we can achieve macroeconomic stability.”
 
President Mahama stressed the importance of restoring public trust through sound fiscal policies and urged the Finance Ministry to adopt strategic measures to rebuild the economy.
 
“The challenges are immense, but with the right policies and planning, we can navigate this crisis,” he added. As Ghana grapples with its economic struggles, the focus remains on ensuring debt sustainability while protecting livelihoods amid rising inflation and a high cost of living.
 
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