Despite Ghana restructuring most of its debts, Ghana will face significant liquidity pressures in 2025 and 2026, Fitch Ratings Agency has predicted.
The credit rating agency based in the United Kingdom asserts Ghana’s interest-to-revenue ratio will remain among the highest in its rated sovereign portfolio.
According to estimates, Fitch says the ratio will reach 29% in 2025 and 30% in 2026, nearly double the average of 16% for emerging markets.
Thomas Garreau, Associate Director for Europe, Middle East, and Africa Sovereign Ratings at Fitch, has expressed the need for Ghana to adopt Drastic Fiscal Measures, stressing the need for aggressive fiscal reforms to address Ghana’s economic challenges.
“We still anticipate significant liquidity pressures for Ghana,” Garreau stated.
“The country’s interest-to-revenue ratio remains exceptionally high at approximately 30%, which is nearly double the emerging market average. This underscores the need for drastic measures to stabilize the fiscal economy.”
Despite these challenges, Garreau acknowledged Ghana’s efforts at fiscal consolidation, citing a 4.6 percentage point primary fiscal adjustment achieved between 2022 and 2024.
On Ghana’s outlook on sovereign default, Fitch previously indicated plans to lift Ghana out of sovereign default by July 2025. However, the ongoing liquidity pressures and high interest burdens could complicate the country’s path to financial stability.
Ghana’s current downgrade by credit rating agencies a ‘borla’ status – Mahama
