Prof. Elikplimi Komla Agbloyor

An Associate Professor in Finance at the University of Ghana Business School, Elikplimi Komla Agbloyor has cautioned that the country could be paying more to retire its external debt if government resumes the payment of loans after 2026 due to exchange rate volatilities.

He explained that more than half of Ghana’s debt was contracted in foreign currencies, particularly the U.S dollar, which will require that more cedis be needed to pay such debt if the exchange rate continues to deteriorate.

Speaking on the Super Morning Show on Joy FM, July 31, 2024, Prof. Agbloyor told the host, Winston Amoah that the future of Ghana’s debt payment schedule, post the International Monetary Fund (IMF) programme looks daunting since the cedi has not shown any signs of long term stability.

“There is a very high risk that in 2027, we will struggle to pay. We need to maintain exchange rate stability. Currently, about 61 percent of our borrowing is in foreign currency, only 39 percent is domestic currency. Consequently if the cedi keeps depreciating, we will struggle to pay the loans”, he cautioned.

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