Ghana’s debt distress rating upgraded to moderate risk- IMF rep states

Ghana’s debt distress rating has been upgraded from high risk to moderate risk, marking the first such improvement in 13 years, according to the International Monetary Fund (IMF).

IMF Resident Representative to Ghana, Dr Adrian Alter, described the development as a major achievement, noting that it came two years earlier than initially expected.

Speaking on The Point of View with Bernard Avle on August 24, 2026, Dr Alter explained that the latest Debt Sustainability Analysis (DSA) conducted at the end of Ghana’s Extended Credit Facility (ECF) programme showed significant improvements in the country’s debt sustainability indicators.

“The rating has been upgraded from high risk of debt distress to moderate risk of debt distress. And this is the first time in 13 years, so it’s a huge achievement,” he stated.

He noted that the country’s key debt sustainability indicators had improved and were now below the required thresholds.

According to him, Ghana’s central government public debt has also fallen to about 45 per cent of Gross Domestic Product (GDP).

Dr Alter explained that the government must continue working to reduce borrowing and interest costs, which currently take up about one-third of government expenditure.

He said lowering interest costs would create more fiscal space for the government to spend on salaries, social programmes and development projects.

He stressed the need for increased domestic revenue mobilisation to support capital expenditure without placing excessive pressure on borrowing.

However, he cautioned that the government must avoid competing with the private sector for funds needed to expand businesses and create jobs.

“The private sector should be the one creating jobs and boosting growth,” he noted.

Dr Alter added that private sector credit had recently increased by about 40 per cent year on year, based on the latest statistics from the Bank of Ghana, describing the development as a positive sign for economic growth.

By: Jacob Aggrey