Ghana’s public finances have recorded a significant improvement, with the country’s debt distress rating upgraded from “high risk” to “moderate risk”, according to the International Monetary Fund (IMF) Resident Representative to Ghana, Dr Adrian Alter.

Speaking on The Point of View, Dr Alter described the development as a major achievement, noting that it is the first time in 13 years that Ghana has moved out of the high-risk category.

“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,” Dr Alter said.

He explained that Ghana’s debt sustainability indicators have improved significantly, with public debt now standing at about 45% of Gross Domestic Product (GDP).

The IMF assessment comes amid broader efforts by the government to restore fiscal stability following Ghana’s debt crisis, which led to domestic and external debt restructuring and the country’s engagement with the IMF.

The improvement in Ghana’s debt position also coincides with a sharp reduction in the proportion of government revenue being used to service public debt.

Finance Minister Dr Cassiel Ato Forson recently said Ghana now spends less than 20% of its revenue on debt servicing, compared with more than 50% in the past.

In a statement shared on social media, Dr Forson said the previous debt-service burden had significantly constrained government’s ability to finance critical sectors.

“In the past, Ghana spent over 50 percent of its national revenue on servicing debt,” he said, adding that the situation had left fewer resources for schools, hospitals, roads and other essential infrastructure.

“Today, I am proud to say that we have made significant progress. We now spend less than 20 percent of our revenue on servicing debt!” he added.

The two developments — the IMF’s assessment of a shift from high to moderate risk of debt distress and the Finance Minister’s reported reduction in debt-service costs to below 20% of revenue — provide contrasting but complementary measures of Ghana’s debt recovery.

While the IMF rating focuses on the sustainability of Ghana’s overall debt position and its ability to meet obligations over time, the debt-service figure highlights the immediate pressure that debt payments place on government revenue.

Recent figures indicate that Ghana’s public debt stood at approximately 44.7% of GDP at the end of 2025, down from 61.8% a year earlier, according to figures presented by the Finance Minister during the 2026 mid-year fiscal review.

The improvement follows extensive debt restructuring and fiscal consolidation measures undertaken after Ghana’s debt crisis.

For the government, the reduction in debt-servicing costs is expected to create additional fiscal space for investment in infrastructure and essential public services. However, sustaining the gains will require continued fiscal discipline, stronger revenue mobilisation and careful management of new borrowing.

The IMF’s assessment therefore represents an important milestone in Ghana’s recovery, while the government’s ability to preserve these gains will be critical to ensuring that the improved debt indicators translate into lasting economic stability and increased resources for development.