World Bank Warns Ghana Against Early Return to Eurobond Market
The World Bank has cautioned the Government of Ghana against making a premature return to the Eurobond market, warning that such a move could erode the country’s credibility and undermine efforts to achieve long-term economic stability.
In its latest assessment of Ghana’s post-crisis recovery, the Bank stressed that “the most positive immediate action the government can take would be to refrain from precipitously re-accessing the Eurobond market.”
Call for Structural Reforms
The World Bank emphasised that the ability to borrow again from international markets should not be misconstrued as a sign of credibility. Instead, it should be treated as an opportunity to demonstrate lasting reform commitments.
It urged government to use the ongoing crisis as a turning point to implement long-delayed structural reforms, particularly in the energy and cocoa sectors, which it described as critical tests of the administration’s policy resolve.
Domestic Revenue Mobilisation
The Bank advised that vigorous domestic revenue mobilisation must be prioritised to generate strong primary fiscal surpluses. This, it said, is key to placing public debt on a sustainable path while creating fiscal space for development without excessive dependence on external borrowing.
A Clear Break From the Past
“There is an urgent need to signal a clear break from the past and a commitment to change. Staying the course is vital for establishing credibility and substantially reducing country risk and borrowing costs, improving investment sentiment among foreign and domestic firms, and supporting a sustained growth recovery and long-lasting job creation,” the report said.
The World Bank’s warning comes as Ghana works to restore investor confidence and stabilise its economy following a prolonged debt crisis and bailout negotiations with international partners.
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