{"id":80230,"date":"2025-08-13T18:16:13","date_gmt":"2025-08-13T18:16:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/80230\/"},"modified":"2025-08-13T18:16:13","modified_gmt":"2025-08-13T18:16:13","slug":"deloitte-warns-against-foreign-borrowing-spike-despite-improved-debt-position","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/80230\/","title":{"rendered":"Deloitte warns against foreign borrowing spike despite improved debt position"},"content":{"rendered":"

\"Deloitte <\/a>Deloitte urges caution as Ghana eyes return to international capital market<\/p>\n

Deloitte Ghana has advised the government to exercise restraint in returning to the international capital market, despite the favourable rebound of the economy.<\/p>\n

According to the research and advisory firm, the government must learn from historical mistakes to avoid plunging the economy into debt, as was seen in 2022.<\/p>\n

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Ghana’s economy has received upgrades from international rating agencies following its strong macroeconomic performance in the last six months of 2025.<\/p>\n

Quoted by myjoyonline, Deloitte said, \u201cReliance on foreign debts must be moderated, with inflows strictly channelled into strategic capital investments that can adequately support repayment of such loans.”<\/p>\n

Deloitte also noted that the decline in the debt-to-GDP ratio (from 78.5% as of December 2021 to 43.8% as of June 2025) reflects an improvement in debt sustainability and major progress towards the medium-term target debt-to-GDP ratio of 55% by 2028, as agreed with the International Monetary Fund.<\/p>\n

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Ghana\u2019s total public debt reduced by GH\u00a2113.7 billion as of June 2025, representing a 15.6% reduction from GH\u00a2726.7 billion at the end of December 2024 to GH\u00a2613 billion in June 2025. <\/p>\n

The decline was largely attributed to the appreciation of the local currency against the dollar and the government’s finalisation of the debt restructuring programme.<\/p>\n

The gross public debt as a percentage of Gross Domestic Product (GDP) stood at 70.6% in June 2024, as compared to 43.8% as of June 2025. <\/p>\n

It added that, “the improvement in debt sustainability is expected to induce improved ratings from other international credit rating agencies such as S&P and Moody’s, which, in turn, will drive up investor confidence in Ghana\u2019s economy.”<\/p>\n

It, however, lauded the government’s commitment to debt sustainability by establishing cash buffers, especially the sinking fund.<\/p>\n

\u201cWe recommend that the government accelerate efforts in this regard and provide regular updates on the fund\u2019s position in order to enhance investor confidence,\u201d it advised.<\/p>\n

SSD\/EB<\/p>\n","protected":false},"excerpt":{"rendered":"Deloitte urges caution as Ghana eyes return to international capital market Deloitte Ghana has advised the government to…\n","protected":false},"author":2,"featured_media":80231,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101],"class_list":["post-80230","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/80230","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=80230"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/80230\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/80231"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=80230"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=80230"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=80230"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}