Seth Terkper Defends 2025 Budget as Crucial Step Towards Austerity
Accra, Ghana - 17 March, 2025 - In a bid to address Ghana's spiraling debt, Presidential Advisor on the economy Seth Terkper has come out in strong support of the 2025 budget, calling it a crucial step towards implementing austerity measures.
Terkper, a former Minister of Finance, emphasized that Ghana's debt portfolio has undergone significant changes over the years, making innovative strategies essential to avoiding default on external debt payments due between 2026 and 2028.
Ghana's economic challenges have been well-documented, with rising inflation, escalating public debt, and a depreciating currency posing significant threats to the country's stability. In this context, the 2025 budget has been touted as a make-or-break solution to Ghana's economic woes.
Speaking at a farewell ceremony for Simon Madjie, the former Executive Secretary of the American Chamber of Commerce-Ghana, Terkper stressed that alternative solutions are crucial to prevent defaulting on external debt payments between 2026 and 2028.
Ghana's debt portfolio has evolved significantly over the years, with the country facing a critical period in the next three years. Terkper warned that failing to find a solution, whether through debt repayment or refinancing, could lead to a rare possibility of defaulting for a third time
“As we speak, we’ve just cleared the first and suspended budget, and three more major ones are ahead. For instance, one of them is an outlier, but the years 2026, 2027, and 2028 will be crucial. We must find a solution—whether through paying down the debt or refinancing.
“Otherwise, there is a rare possibility of defaulting for a third time. That’s the reality, and this is the concern driving the tough austerity measures in the current budget,” Terkper stated.
As Presidential Advisor, Terkper will work closely with Minister of Finance-designate Dr. Cassiel Ato Forson to implement a range of economic policies aimed at stabilizing the economy and promoting sustainable growth. With his extensive experience in fiscal policy and debt management, Terkper is well-positioned to provide strategic guidance on critical economic issues.
Meanwhile, the Ghana Investment Promotion Centre (GIPC) has reaffirmed the government's commitment to supporting local and foreign businesses. CEO Simon Madjie emphasized Ghana's openness for business, highlighting efforts to review the GIPC law and boost investment in key sectors such as agribusiness, manufacturing, and pharmaceuticals.
“I believe our country is truly open for business. The government is committed to reviewing the GIPC law to reflect the AfCFTA centre for investment. There will also be efforts to boost investment in sectors such as agribusiness, manufacturing, pharmaceuticals, and the 24-hour economy, as promised by His Excellency, President John Mahama,” Madjie said.
Source: Lead News Online
