The Minister of Finance, Dr Cassiel Ato Forson, has described Ghana’s €163 million bilateral debt restructuring agreement with Belgium’s Export Credit Agency as a significant step that will ease pressure on the national budget and bring the country closer to completing its broader debt restructuring programme.
He stated that the agreement would create additional fiscal space by reducing the amount of public funds committed to debt servicing, allowing government to redirect resources towards capital projects and social infrastructure intended to improve the living conditions of Ghanaians.
Dr Forson contrasted the development with the severe fiscal pressures Ghana faced during its recent debt crisis, when about 50% of government expenditure was being committed to debt servicing, significantly limiting the resources available for major social and infrastructure projects.
He stated that that the heavy debt-servicing burden contributed to a lack of fiscal space for government to expand public infrastructure and social services, including the construction of schools and hospitals, while also constraining its ability to respond effectively to other development needs.
“Ghana will have an opportunity to experience more healthcare because we are reducing the amount we use to service the debt. And the people of Ghana will be able to see more schools, more roads, and more social infrastructure. Obviously, all of that will be built as a result of this restructuring that we are going through,” he stated.
The Finance Minister noted that the situation had since improved considerably, with government now spending less than 20% of its total revenue on debt servicing, which he argued had created greater room for public investment.
“And so, today, I’m proud to say that we have made some considerable progress. Today, we are spending less than 20% of our total revenue to service our debt. And that obviously means that, unlike the past, we can spend more to take care of public infrastructure and social care,” he stated.
The agreement with Belgium forms part of Ghana’s wider external debt restructuring programme, which followed the country’s severe economic and financial crisis in 2022–2023 and the subsequent declaration of a debt default. Ghana has been negotiating with its official and commercial creditors to restore debt sustainability and create room for economic recovery.
The agreement with Belgium forms part of Ghana’s wider external debt restructuring programme, which followed the country’s sovereign debt default in December 2022. The restructuring has continued to advance, with the government reporting that it had signed 15 bilateral restructuring agreements by June 2026..
Dr Forson maintained that the latest agreement would not only provide immediate fiscal relief but would also strengthen confidence in Ghana’s economy and contribute to a more stable economic outlook as the country works towards completing the restructuring process.
He further emphasised that the government was taking steps to ensure that Ghana does not return to the unsustainable debt position that necessitated the restructuring, with fiscal rules being strengthened to impose greater discipline on future governments.
“Ghana is putting in measures to ensure that we will not get to an unsustainable debt situation anymore. We largely want to ensure that the fiscal rules that we have instituted today are enshrined in law. So that, even if this government is not there, the next government will have to make sure that these fiscal rules are respected,” he said.
The measures include amendments to the Public Financial Management Act establishing a minimum annual primary surplus of 1.5% of GDP and a debt-to-GDP ceiling of 45% by 2034, with an Independent Fiscal Council established to strengthen oversight of compliance with the fiscal rules.
The government has also tightened controls over public expenditure through a mandatory commitment-authorisation regime, requiring prior approval before covered government procurement can proceed. The Ministry of Finance has further linked the Ghana Electronic Procurement System (GHANEPS) with the Ghana Integrated Financial Management Information System (GIFMIS) to ensure procurement approvals are tied to available budgets and allotments.
Under the new controls, government contracts for goods, services and works must be preceded by a GIFMIS-generated purchase order, while heads of internal audit units are required to certify compliance with the commitment-control requirements. The Ministry has also introduced quarterly Commitment Control Reports, with institutions that fail to comply subject to hearings and possible administrative sanctions.
Another major reform is the establishment of the Value for Money Office, which is intended to scrutinise major public expenditure, address inflated contracts, cost overruns and abandoned projects, and ensure that government spending delivers measurable economic and social returns. Parliament passed the Value for Money Office Bill in March 2026.
The Finance Ministry has also established a PFM Compliance Division and Compliance Enforcement Committee to monitor adherence to expenditure controls, investigate breaches and recommend sanctions, while a public PFM Compliance League Table is being used to rank institutions according to their compliance with financial-management requirements.
These measures form part of the government’s broader effort to ensure that the fiscal space created through debt restructuring is not eroded by a return to uncontrolled borrowing and expenditure. The 2026 Mid-Year Fiscal Policy Review describes the reforms as a shift towards stronger expenditure controls and institutional safeguards designed to make fiscal discipline more durable.
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