Professor of Economics at the University of Ghana, Godfred Alufar Bokpin, has described the government’s decision to settle its US$700 million Eurobond obligation ahead of schedule as positive for the country’s economy.
He asserted that the move will help strengthen investor confidence and reinforce the country’s credibility in the international debt market.
However, he cautioned that the payment would not immediately translate into improved living conditions for Ghanaians, citing the country’s competing fiscal demands and limited resources.
Prof. Bokpin made the remarks in an interview on JoyNews on Monday, July 6, following the Ministry of Finance’s announcement that Ghana had fully settled the US$700 million Eurobond obligation on July 2, ahead of schedule, under the Eurobond Debt Exchange Programme.
“It’s good news for Ghana, but bear in mind that there are various stakeholders on this economy and claims on this country, and clearly, given our experience with the debt crisis, we are prioritising creditors over other claims on government resources… it is important that we also prioritise the debt market and restore and consolidate investor confidence,” he said.
According to the economist, the government’s approach is justified because Eurobond holders made significant sacrifices during Ghana’s debt restructuring process, including accepting substantial haircuts and payment rescheduling that created fiscal space for the country.
He argued that honouring the country’s debt obligations promptly would help rebuild credibility with investors and improve Ghana’s access to international capital markets in the future.
Prof. Bokpin, however, noted that while restoring investor confidence remains important, the government must also balance its obligations to creditors with the pressing needs of Ghanaians, including infrastructure, healthcare and payments owed to contractors.
He observed that the Finance Minister faces difficult choices in allocating limited resources among competing national priorities.
Responding to questions about whether the early debt payment would improve the livelihoods of ordinary Ghanaians, the economist said immediate relief should not be expected.
“I’ll probably advise you[Ghanaians] to keep your plate empty a bit… we are not out of the woods totally. There are priorities… we have limited resources and we need to allocate them in such a way that we are able to arrive at optimal performance,” he stated.
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