|A short note on public debt Sustainability in Ghana|
The HIPC Initiative has been very successful in Ghana. There is however the general recognition that bringing a single debt measure down to a critical threshold at a single point in time is no guarantee against future debt problems (IMF, 2001). As noted in an IMF publication (IMF 2000a), “debt relief under the HIPC Initiative provides a basis, but not a guarantee for long-term debt sustainability in HIPC countries”. While the debt relief granted under the HIPC Initiative will substantially reduce the debt service due on existing debt, maintaining debt sustainability will also crucially depend on future macroeconomic policies, growth performance, and financial assistance from donors.
Download full text inpdf