The World Bank’s Country Director, Robert Taliercio, warned Ghana against returning to international capital markets too soon, as it may jeopardize its economic recovery and reverse recent debt restructuring gains. He highlighted past patterns of financial irresponsibility and cautioned against investor determent, which could lead to higher borrowing costs and instability.
The World Bank’s Country Director for Ghana, Liberia, and Sierra Leone, Robert Taliercio, has cautioned Ghana against an early return to international capital markets. He indicated that such a premature move might jeopardize the nation’s recent economic recovery efforts. An early reengagement could signal negative implications for investors, potentially reversing the advancements achieved through Ghana’s ongoing debt restructuring initiatives.
Taliercio’s remarks came during the unveiling of the World Bank’s latest Public Finance Review report titled “Building the Foundations for a Resilient and Equitable Fiscal Policy.” He highlighted that the country has experienced significant relief following its successful restructuring of domestic and external debts under the $3 billion IMF Extended Credit Facility (ECF) program.
While acknowledging Ghana’s recent successes, Taliercio warned against complacency. He noted that the country has a historical tendency to revert to unsustainable financial behaviors.
The World Bank underscored the importance of caution in Ghana’s fiscal strategy, advocating for careful consideration before reintegrating into the international capital markets. Taliercio emphasized the risks of complacency and returning to adversities prevalent in past experiences. As Ghana strives to consolidate its economic recovery, maintaining prudent financial practices will be essential to avoid the pitfalls of high borrowing costs and financial instability.
Original Source: www.gbcghanaonline.com
