Prof. Quartey urges government to match debt repayments with timely domestic funding

Economist Professor Peter Quartey has urged the government to extend its renewed commitment to debt repayment to the domestic economy by ensuring timely release of funds to Metropolitan, Municipal and District Assemblies (MMDAs) and other public institutions.

His comments follow the Ministry of Finance’s announcement that Ghana had successfully settled a US$700 million Eurobond debt service obligation ahead of schedule.

The payment, completed on July 2, included US$525.2 million in principal and US$174.8 million in interest, bringing Ghana’s total repayment to Eurobond holders since January 2025 to US$2.1 billion under the country’s debt restructuring programme.

While describing the early repayment as a positive development that could boost investor confidence and improve Ghana’s standing in international financial markets, Prof. Quartey said similar commitment must be shown towards funding local institutions responsible for delivering essential services.

He argued that fiscal discipline should not only focus on external obligations but must also reflect in the government’s ability to provide adequate resources to assemblies, ministries, departments and agencies.

“But I would like to add that we should extend the same to the local economy, to institutions, the assemblies and other ministries, departments and agencies,” he said.

“The lack of funding to undertake activities, including waste management and flood-related issues, we should extend the same kind of commitment to them. But otherwise, certainly a positive signal,” he added.

The economist’s remarks come after recent devastating floods affected parts of Accra and surrounding communities, causing damage to infrastructure, disrupting businesses and highlighting persistent challenges in drainage maintenance, waste management and the financial capacity of local authorities.

Prof. Quartey’s comments have renewed discussions on how Ghana can strike a balance between restoring confidence among international investors and ensuring that domestic institutions receive the resources needed to provide critical services and improve climate resilience.

He stressed that strengthening local government financing remains essential to addressing recurring challenges such as flooding, sanitation and infrastructure maintenance across the country.

Prince Antwi

See Full Bio