Chartered Financial Economist Dr. Baah Ayeh Kusi has described Ghana’s successful payment of its US$700 million Eurobond as a positive step that will strengthen the country’s credibility in the international financial market and improve investor confidence.
Speaking on the economic implications of the payment via a zoom meeting on Kessben TV’s Digest show, Dr. Kusi said every government has a responsibility to reassure its citizens during difficult economic periods, even though settling such debt obligations may come with short-term financial implications.
He noted that government is expected to put measures in place to cushion the economy against any immediate effects arising from the payment.
According to him, honouring the Eurobond commitment on schedule sends a strong signal to the international community that Ghana is committed to meeting its financial obligations.
“When we pay it, it will boost investment opportunities and improve our credibility in the international market,” he said.
Dr. Kusi further stressed that paying the debt before the due date enhances Ghana’s reputation, describing it as an honourable achievement that reflects fiscal discipline.
He also advised governments to prioritize loans that are tied to productive and self-financing projects, particularly infrastructure investments capable of generating revenue to repay the borrowed funds.
However, he cautioned against borrowing for consumption, warning that such loans often become difficult to repay and could undermine confidence among creditors.
The economist concluded that while debt repayment may temporarily put pressure on public finances, prudent borrowing and timely repayment remain essential for sustaining investor confidence and long-term economic stability
By Maurice Otoo
