The Finance Minister, Dr Cassiel Ato Forson, says Ghana’s debt-servicing burden has dropped significantly, with the country now spending less than 20 % of its revenue on debt payments, compared with about 50 % previously.

According to him, the high cost of servicing the country’s debt had previously placed significant pressure on government finances and limited funding available for key sectors, including education, healthcare and infrastructure.

“At its peak, we were spending about 50 per cent of our revenue on debt servicing. This meant less money for schools, hospitals, roads and other infrastructure. That was unsustainable,” Dr Forson said.

He said the reduction in debt-servicing costs represented significant progress in the government’s efforts to restore fiscal stability and create room for increased investment in public services and infrastructure.

“Today, I am proud to say that we have made considerable progress. We are now spending less than 20 percent of our revenue on servicing debt,” he added.

Dr Forson also assured that steps were being taken to ensure Ghana does not return to the high debt levels and fiscal pressures experienced in the past.

He said the government was working to have the fiscal rules introduced as part of its reforms entrenched in law to ensure they remain binding regardless of which administration is in power.

“We are ensuring the fiscal rules we have instituted are enshrined in law, so that no matter which government is in office, these rules will be respected,” he stated.

The Finance Minister made the remarks at the signing of an agreement between Ghana and Belgium to restructure debt owed to Belgium’s export credit agency.