Economist Professor Peter Quartey has called on the government to complement its renewed commitment to external debt repayments with increased financial support for Metropolitan, Municipal and District Assemblies (MMDAs) and other public institutions, arguing that fiscal discipline should also be reflected in the timely release of domestic funds.
His remarks follow the Ministry of Finance’s announcement that Ghana had settled a US$700 million Eurobond debt service obligation ahead of schedule.
The payment, completed on July 2, comprised US$525.2 million in principal and US$174.8 million in interest, bringing the country’s total repayments to Eurobond holders since January 2025 to US$2.1 billion under its debt restructuring programme.
While describing early repayment as a positive signal to international investors and financial markets, Prof. Quartey said the government should demonstrate the same level of commitment to funding critical public institutions that deliver essential services.
“But I would like to add that we should extend the same to the local economy, I mean, to institutions, the assemblies and other ministries, departments and agencies.
“The lack of funding to undertake activities, including waste management, including flood-related issues, we should extend the same kind of commitment to them. But otherwise, certainly a positive signal.”
The economist’s comments come in the wake of the devastating floods that recently affected parts of Accra and surrounding communities, disrupting businesses, damaging public infrastructure, and once again exposing longstanding challenges relating to drainage maintenance, waste management, and the financial capacity of local authorities to respond effectively.
Prof. Quartey’s intervention adds to the growing debate over how Ghana can balance efforts to restore confidence in the international financial markets with the need to provide adequate fiscal support for local governments and public institutions responsible for delivering essential services and strengthening climate resilience.
