The International Monetary Fund (IMF) has cautioned Ghana against prematurely returning to the international capital markets.
According to IMF, a repeat of the “excessive and expensive borrowing” of the past could undermine Ghana’s economic recovery which it deems so far to be fragile.
Dr. Adrian Alter, the Resident Representative of the IMF to Ghana, made the appeal in an interview on Accra-based Channel TV.
Speaking during the interview monitored by Africa Publicity, Dr. Alter asked the President John Dramani Mahama-led government to remain extremely prudent in its financing decisions.
He says Ghana should focus on concessional loans from multilateral partners such as the World Bank, the African Development Bank, and the IMF.
He says borrowing costs remain prohibitive for emerging economies such as Ghana, saying a return to the Eurobond market currently is risky.
He indicated that “On the domestic market, we’ve worked closely with the government to start lengthening the maturity of its bonds beyond one year. Dr. Alter said. “We hope that at the start of next year, conditions will be in place for the domestic bond market to reopen.”
