Ghana’s central bank has warned that incomplete external debt restructuring negotiations could create immediate payment difficulties. The Bank of Ghana (BoG) stated this in its May 2026 Monetary Policy Report (MPR). These challenges may involve meeting the country's foreign currency commitments.
The BoG report indicates that these potential issues could weaken the domestic currency, the cedi. To manage future external debt service, Ghana will need more domestic savings. High foreign reserve accumulation is crucial for meeting significant external debt obligations, the report advised.
This situation comes as Ghana continues to navigate complex economic conditions. The country is working to stabilize its finances following a period of high inflation and currency depreciation. Data from the BoG’s May 2026 MPR shows a focus on fiscal consolidation. Overall budget operations in the first quarter of 2026 recorded a commitment-basis surplus of GHS 1.709 billion. This figure represents 0.1% of Gross Domestic Product (GDP). It contrasts sharply with an expected target deficit of GHS 18.578 billion, or 1.2% of GDP.
The Bank of Ghana also noted that fiscal targets were met despite concerns about revenue collection and the speed of government spending. Revenue yields showed an improvement in April 2026. This pickup attributes to new revenue measures outlined in the 2026 budget. These measures leverage technology and Artificial Intelligence (AI) to prevent revenue losses and improve collection efficiency. Governor of the Bank of Ghana, Dr. Johnson Asiama, has previously pointed to global uncertainties as a risk to fiscal performance. These include unpredictable commodity prices and geopolitical tensions.
To enhance expenditure control, the government is scaling up commitment authorization. It is also beginning operations of the value-for-money activity. The corresponding primary balance (commitment) was a surplus of 1.2% of GDP. This exceeded the primary surplus target of 0.2% of GDP. On a cash basis, the overall budget surplus was GHS 824.3 million. This compares to a target deficit of GHS 20.924 billion. This cash-basis surplus equals 0.1% of GDP against a target of 1.3% of GDP.
The uncompleted external debt restructuring could still affect market confidence. It may also influence investment decisions, especially from foreign investors. Policymakers will need to maintain strict fiscal discipline. They must also work quickly to finalize debt negotiations to prevent further economic instability. The stability of the cedi and Ghana's ability to attract foreign capital depend on these outcomes.