“Pay Investors, But Fund the Assemblies Too”: Prof. Quartey Urges Gov’t After Early Eurobond Repayment

Economist Professor Peter Quartey is urging government to match its renewed commitment to external debt servicing with stronger financial support for Metropolitan, Municipal and District Assemblies (MMDAs) and other public institutions, arguing that fiscal discipline must also reflect in the timely release of domestic funds.

His comments 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, covered US$525.2 million in principal and US$174.8 million in interest, bringing total Eurobond repayments since January 2025 to US$2.1 billion under the ongoing debt restructuring programme.

Prof. Quartey welcomed the early repayment as a strong signal to international investors and financial markets, but stressed that the same level of commitment must be extended to institutions responsible for essential public services.

“We should extend the same to the local economy — to the assemblies and other ministries, departments and agencies. The lack of funding to undertake activities, including waste management and flood‑related issues, must be addressed. Otherwise, certainly a positive signal.”

His intervention comes in the aftermath of devastating floods that recently hit parts of Accra and surrounding communities, disrupting businesses, damaging infrastructure and once again exposing chronic weaknesses in drainage maintenance, waste management and the financial capacity of local authorities to respond effectively.

Prof. Quartey’s remarks add to the growing debate over how Ghana can balance efforts to rebuild confidence in international financial markets with the urgent need to strengthen domestic institutions that deliver essential services and support climate resilience.