Emerging Financial Markets in Ghana and Public Financial Management Crisis Uncertainties Amidst Debt Restructuring

Abstract

Ghana’s financial markets and the associated challenges, with a particular focus on the impact of debt restructuring on the country’s public financial management, and its potential implications for Ghana’s overall economic development. This paper will begin with a brief overview of the financial market structure in Ghana, followed by a discussion of the implications of debt restructuring for the country’s public financial management. It will then discuss current and potential policy measures that could be implemented to promote financial market development in the country, before concluding with an examination of the prospects for financial market development in Ghana. This chapter aims to investigate the current challenges facing emerging financial markets in Ghana and the public financial management uncertainties arising from debt restructuring. It seeks to identify potential solutions to the country’s current financial market and public financial management issues, examine the potential implications of these issues on the country’s economic development, and provide a review of the current policy measures and their potential effectiveness.

1. Introduction

In recent years, financial markets have been emerging in Ghana as a result of various economic and financial reforms. This includes the development of private sector banks, the liberalization of exchange rates, the deregulation of interest rates, and the introduction of Treasury bills. In addition, the country has seen an increase in cross-border investments and the emergence of venture capitalists [1]. This paper examines the implications of these emerging financial markets for Ghana and the public financial management crisis it faced in 2022. It looks at the challenges posed by the country’s debt restructuring process, which has been complicated by the fiscal crisis and the uncertain economic outlook. It also examines the prospects for a sustainable financial system in the country, drawing on the experiences of both regional and international investors. Ghana has recently been faced with a major public financial management crisis, due to a combination of factors, including declining oil and gold prices, the depreciation of the local currency and massive debt accumulation. In response, the Ghanaian government, in collaboration with the International Monetary Fund (IMF), has implemented several fiscal reforms and instituted a debt restructuring process. This has been further complicated by the uncertain global economic outlook, which has limited both the availability of external financing and the government’s ability to effectively manage fiscal resources. The fiscal crisis in Ghana is part of a wider challenge facing many African economies and is linked to the broader context of debt sustainability and the need for improved financial oversight and transparency [2]. The country’s financial markets have been relatively small and underdeveloped, with a small number of participants and limited depth and liquidity. Despite this, recent years have seen a significant rise in the importance of these markets and growing flows of capital. Private sector banks have grown in number and foreign investors have become increasingly involved. Furthermore, the Ghanaian government has taken steps to improve the regulatory environment, including the introduction of a financial sector recovery program and the development of an online platform to facilitate direct lending by banks [3].

The emergence of these financial markets has helped to provide the country with increased access to capital and has provided the government with additional channels to manage its debt and reduce its exposure to financial crisis risks. However, there are still significant uncertainties surrounding the stability of Ghana’s financial sector. An important challenge is a potential for a liquidity crisis, as a result of insufficient levels of capital and borrowing capacity. Furthermore, the increasing global focus on debt transparency and risk assessment has placed pressure on the government to ensure that debt restructuring takes place in a responsible and transparent manner. Ghana has presented both opportunities and challenges for the country. On the one hand, it has enabled the government and the private sector to access more capital and better manage their debt. On the other hand, it has created uncertainty about the sustainability of the financial system and posed significant challenges to the debt restructuring process [4]. As Ghana continues to grapple with its public financial management crisis, it is important that the government is able to effectively manage the risk posed by the financial markets and ensure that the country’s financial system remains stable and sustainable. Financial markets play an important role in the economic development of a country, and their current development is of great importance to Ghana. Ghana’s financial markets have recently emerged, and they are faced with numerous challenges which could have a significant impact on the country’s public financial management and debt restructuring strategies [5].

Financial markets have always been an important part of any economy, and their role in the development of Ghana is no exception. Financial markets play a major role in helping to allocate funds efficiently, allowing macro-economic demands and supply to interact in a plan that is profitable to both individuals and businesses alike. In Ghana, a number of domestic and international financial markets have been established, ranging from the world-renowned international stock markets, to the more obscure and recently-established domestic investments [6].

The concept of financial markets in Ghana dates back to the early twentieth century, when the British Gold Coast was established and the Bank of Ghana was established in 1957. The Bank of Ghana would become the main regulator of the financial markets in Ghana, and would be responsible for setting the interest rates, controlling the money supply and issuing credit. Prior to the 1950s, Ghana was heavily reliant on the cocoa bean for its economic growth and development. This agricultural commodity provided most of the income for the country and its people. However, the 1950s saw a shift away from the reliance on cocoa to the emergence of financial markets, which started to provide a more reliable stream of income and capital to the nation. One of the most important financial markets in Ghana is the Ghana Stock Exchange, which was established in 1990 [7]. The Ghana Stock Exchange is the largest and most liquid of all the financial markets in Ghana, and it plays an important role in the nation’s economy by allowing businesses to list their securities and attract private investments. The Ghana Stock Exchange has been successful in helping to attract foreign capital to the nation, as a result of which international financial institutions such as the World Bank and International Monetary Fund have provided the country with much needed credit. In addition to the Ghana Stock Exchange, other financial markets have sprung up such as the Ghana Investment and Securities Exchange, the Ghana Securities Exchange, the Ghana Commodities Exchange, and the Ghana Derivatives Exchange [8].

2. Discussion

Financial markets highlight an important role in the development of Ghana’s economy, and the resulting economic gains of such markets are numerous. The main economic gains of the financial markets include:

• Increased liquidity of the capital markets in Ghana, which allows for more efficient capital allocation and better pricing of investments.

• Better access to global markets, which can attract foreign capital and help create a more competitive market.

• Improved confidence in the economy, which can help attract tourists and foreign investments.

• Increased foreign investment, which can help improve the living standards of the people.

• Greater transparency and oversight, which can help reduce market volatility and ensure market integrity and investor protection.

• Improved access to credit and financial services, which can help improve the safety of savings, reduce transaction costs, and increase access to capital.

Financial markets are an integral part of any economy, and their role in the development of Ghana is no exception. Ghana’s financial markets have been instrumental in helping to provide the nation with much-needed capital, liquidity, and access to foreign capital. As a result, the economic gains of these markets are numerous, including the improved allocation of capital, improved investor confidence, increased foreign investments, and better access to credit and financial services [9]. With the help of financial markets, Ghana is well-positioned to continue its economic development and improve the living standards of its citizens.

2.1 Financial market structure and challenges in Ghana

The financial market of Ghana is a segment of the larger economy and plays an integral role in driving economic growth, development, and stability in the country. Ghana’s economy is heavily reliant on external sources of capital, such as foreign aid and external borrowing, and thus the management of these funds and the functioning of the domestic financial market are of utmost importance. A thorough understanding of the structure and challenges of the financial market in Ghana is thus necessary to maintain a healthy and sustainable economy. The financial market of Ghana is composed of traditional financial intermediaries such as banks, non-banking financial institutions, microfinance institutions, insurers, and other non-banks. These institutions are regulated by the Bank of Ghana, the central bank of Ghana, to ensure the soundness, efficiency, and stability of the system. Furthermore, the Bank of Ghana plays an active role in the regulation of the capital and money markets of Ghana, as well as overseeing the activities of the non-bank financial intermediaries [10].

Despite the presence of the Bank of Ghana’s regulatory role, various challenges hinder the effective functioning of the financial market in Ghana. These challenges can be categorized broadly into three main areas: deficient financial infrastructure, financial inclusion, and liquidity risks. Firstly, the structure of the financial market in Ghana suffers from limited infrastructure, which hinders the ability of the banks and other financial intermediaries to operate efficiently and effectively. The lack of efficient payment systems, poor access to financial technology, and inadequate capital markets infrastructure all impede the efficient flow of money and the allocation of credit. As a result, there is a lack of access to capital and resources, which can act as a major constraint on the growth of the market. Financial inclusion is also a major challenge in Ghana. Notably, the country has an extremely large unbanked population, with around 43% of the population estimated to be unbanked. This is due to various factors, such as access to capital, poverty, and a lack of basic financial literacy. To ensure that all citizens have access to the financial market, the government and the regulators encourager greater financial inclusion and that efforts must be made to educate the population about financial services and products.

Finally, liquidity risks are a major challenge for the Ghanaian financial market. The market is characterized by low liquidity and a lack of long-term resources, leading to a reliance on short-term money markets. This poses significant risks, as the market can be vulnerable to sudden changes in liquidity, which can cause rapid and significant downturns in the economy. The structure of Ghana’s financial market is thus hampered by various challenges, which affect its ability to provide the efficient credit and capital allocation needed for economic growth and stability. To counter this, the government and the regulators must continue to work to improve the infrastructure of the financial system, promote financial inclusion and provide access to credit to all citizens, and promote long-term resources and enhanced liquidity. Ghana has experienced a turbulent economic landscape in recent years. Economic difficulties have been compounded by several factors, including rising global commodity prices, political uncertainty and an overvalued exchange rate. These issues have highlighted the need for Ghana to undertake a successful debt restructuring program. Furthermore, the banking sector in particular has suffered from a difficult operating environment and the need for reform processes has become increasingly apparent.

2.2 Financial market structure

The financial market structure (FMS) in Ghana is characterized by a relatively large banking sector, comprising 31 banks, 3 non-bank financial institutions and 5 microfinance institutions (MFI’s). Furthermore, the country is served by a non-bank financial system including savings and loans companies, merchant banks, and insurance and finance houses. The banking sector is governed by the Bank of Ghana (BOG), which is responsible for formulating and implementing monetary and banking regulations. The BOG also serves as the primary regulator and supervisor of the banking sector. The banking sector has experienced a period of consolidation in recent years, with the number of banks decreasing from 37 in 2001 to 31 in 2017. The decreasing number of banks has led to an increased concentration of banking assets in the larger financial institutions. There is also a trend of increasing ownership of banking assets within the banking sector, which could result in a lack of competition and higher prices for banking services [11].

The capital market in Ghana is relatively underdeveloped and is characterized by a low level of activity and limited access to finance from the capital markets. The number of listed companies on the Ghana Stock Exchange (GSE) is also low. As of July 2017, the GSE had a total of 43 listed companies, which is one of the lowest levels for a capital market in Sub-Saharan Africa.

2.3 Challenges in Ghana’s debt restructuring

Ghana’s debt restructuring has been hampered by several challenges. These include:

1. Unclear debt reporting: The lack of clarity over the country’s debt burden has hampered the ability of the government to make well-informed decisions on debt restructuring. Much of the data on public debt is not reported consistently and the lack of transparency has hindered the ability of the authorities to make progress in debt restructuring [12].

2. Political risks: Political uncertainty in Ghana has posed a challenge to the success of a debt restructuring programme. The lack of political consensus on the terms of a debt restructuring deal has created further delays and hindered progress in this area.

3. Lack of market access: Ghana has limited access to international capital markets and this has restricted the country’s ability to raise funds or restructure its debt. This is compounded by a lack of creditor confidence due to several external shocks and political uncertainty in recent years.

4. Limited capacity: The government of Ghana has limited capacity to implement a successful debt restructuring programme, due to a lack of technical expertise in debt restructuring and a lack of financial resources. This has hindered the ability of the authorities to negotiate the terms of a restructuring deal with creditors.

2.4 Future of banks in Ghana

The banking sector in Ghana has experienced a period of turbulence in recent years. The sector is characterized by a lack of competition, due to a decreasing number of banks and increasing concentration of assets in the larger financial institutions. Furthermore, the sector has been affected by a difficult operating environment, with high non-performing loans (NPLs) and cost-income ratios.

However, the outlook for the banking sector in Ghana is likely to be positive. There is an expectation that the consolidation of the sector will result in a more efficient banking system. Furthermore, the implementation of a successful debt restructuring programme should result in improved financial conditions, and promote a more favorable operating environment. The implementation of a regulatory reform agenda should also improve the efficiency and stability of the banking sector [12]. The Bank of Ghana has undertaken several reforms in recent years, which should reduce concentration risk and increase competition. In addition, technological advances in the banking sector, such as mobile banking and the use of artificial intelligence, should improve the efficiency and quality of service offerings from banks in the country. The financial market structure and challenges in Ghana’s debt restructuring and the future of banks in Ghana have been highlighted in this paper. It has been demonstrated that Ghana has a relatively large banking sector, which has experienced a period of consolidation in recent years. Furthermore, Ghana’s debt restructuring has been hampered by several challenges, including political risks and limited market access. Despite these challenges, the outlook for the banking sector in Ghana is positive, with several regulatory reforms being undertaken and technological advances potentially improving the efficiency and quality of bank services.

2.5 Impact of debt restructuring on public financial management in Ghana

Debt restructuring is a key component of the economic and financial landscape in Ghana. Recently, the country has been engaged in several debt restructuring agreements with various creditors, as part of its effort to address its sovereign debt. The impact of these agreements on the public financial management system in Ghana is largely dependent on the specific terms and conditions of each agreement. Nonetheless, debt restructuring can have a range of serious implications for the fiscal stance of the government and the general state of public finances. One major impact of debt restructuring on public financial management in Ghana is the effect on the fiscal stance of the government. Debt restructuring agreements can often involve the restructuring of debt payments and the lengthening of repayment periods, which can free up short-term resources for the government. This can then be used by the government to finance increased spending or provide greater tax relief. Debt restructuring can also have a significant impact on the liquidity and solvency of the government. If the payments of debt are restructured in a way that reduces liabilities in the short term, then this can provide the government with greater liquidity and solvency, allowing it to borrow at more favorable interest rates and increasing its ability to finance projects and activities.

Furthermore, debt restructuring can also affect the ability of the government to access credit in the future. If the terms of the restructuring agreement are not favorable, this can lead to an increase in the cost of borrowing, which can make it difficult for the government to secure financing for its operations and projects. Moreover, the renegotiated terms often come with strings attached, such as the imposition of reforms or austerity measures, which can negatively affect the quality of public services and the economy as a whole. Finally, it is important to note that debt restructuring can also have a negative impact on investor confidence, as creditors may be reluctant to lend to a government that has restructured its debt. This can lead to an increased cost of borrowing for the government, further reducing its ability to finance operations, and can also reduce foreign direct investment in the country.

Overall, debt restructuring can have both positive and negative impacts on public financial management in Ghana. On the positive side, it can provide the government with greater liquidity and solvency, enabling it to access credit at lower interest rates and free up short-term resources for public spending. On the negative side, it can lead to an increased cost of borrowing, reduce investor confidence, and require the government to adhere to certain conditions and reforms. Therefore, it is important to carefully assess the potential impacts of debt restructuring before furthering any agreements. Debt restructuring is the process of renegotiating loans, or restructuring the repayment schedule so as to reduce the payments and/or interest rates paid on them. It has become a critical tool for managing debt in order to mitigate the consequences of debt overhang. In Ghana, debt restructuring has been used as a means of regaining fiscal discipline and reducing fiscal deficits.

2.6 Impact on credit worthiness and fiscal discipline

Debt restructuring can have a major impact on Ghana’s creditworthiness and fiscal discipline. The country’s debt has increased significantly since 2008, when the government implemented a Debt Relief Programme. This programme enabled Ghana to reduce its debt to GDP ratio from 97.8% to 79.2% by 2011. Despite this reduction, however, Ghana has experienced a series of debt restructurings since 2008, which have led to an increase in the country’s debt burden. The restructuring of these debts has eroded the country’s creditworthiness and fiscal discipline. Debt restructuring has also had an impact on the country’s fiscal sustainability. A number of studies have found that debt restructuring can reduce fiscal sustainability, especially when debt restructuring is used to reduce the principal of a loan. This reduction in principal leads to a reduction in the financial sustainability of the loan, as the debt servicing costs are reduced. In addition, debt restructuring can also lead to a reduction in the interest rate of a loan, which can lead to a further reduction in the sustainability of the loan.

2.7 Impact on public financial sustainability

Debt restructuring can also have a major impact on the public sector’s financial sustainability. It has been argued that debt restructuring can reduce public expenditure by freeing up resources that can be used for other purposes. In addition, debt restructuring can increase public sector revenues by improving the country’s creditworthiness and helping to attract foreign investments. Moreover, debt restructuring can help to reduce the public sector’s debt burden by reducing the cost of servicing the debt.

In conclusion, debt restructuring has had a significant impact on public financial management in Ghana. It has reduced the country’s creditworthiness and fiscal discipline, as well as its public sector’s financial sustainability. In addition, it has helped to reduce the country’s debt burden and free up resources for other purposes. However, it is important to note that debt restructuring should not be used as a substitute for sound economic policy and long-term fiscal discipline.

2.8 Potential implications for economic development in Ghana

The implications of Ghana’s financial market structure and debt restructuring on the country’s economic development are numerous and complex. On one hand, a well-functioning financial market can provide the necessary resources for economic growth and job creation. On the other, a less-than-optimal system could reduce access to capital and resources, resulting in limited economic activity and thus, limited economic growth. Furthermore, debt restructuring agreements can have both positive and negative implications for economic development in Ghana. The positive implications of a well-functioning financial market and effective debt restructuring on economic development in Ghana include improved access to capital and resources, increased investor confidence, increased employment, and increased economic growth. Specifically, improved access to capital allows businesses to expand and grow, potentially creating more jobs and leading to a rise in economic activity. Furthermore, increased investor confidence increases the chances of foreign direct investment, which can bring with it additional capital and resources that can be used to further drive economic growth. On the other hand, the negative implications of a deficient financial market and ineffective debt restructuring on economic development in Ghana include reduced access to capital and resources, decreased investor confidence, reduced employment, and hampered economic growth. Specifically, limited access to capital reduces the opportunities for businesses to invest and grow, leading to reduced economic activity and fewer employment opportunities. Additionally, decreased investor confidence can lead to a decreased influx of foreign direct investment, further reducing access to capital and resources, and thus, economic activity.

Ghana has experienced significant economic development in the past few decades, and its economy is expected to continue to progress in the future. The potential implications for economic development in Ghana are vast and will have a profound effect on the nation’s economic growth and well-being. One of the most important implications is the potential for increased access to health care, education, and financial services. Access to quality health care and education can help to lift people out of poverty, improve productivity and economic growth, and ultimately, lead to a better quality of life. Additionally, increased access to financial services can help to stimulate economic development, as it allows people to borrow money to invest in businesses, purchase goods and services, and start new businesses that may have an economic impact.

Second, the potential implications of economic development in Ghana include the development of infrastructure. Ghana currently has a strong road network and is in the process of developing additional roads, electricity grids, and telecommunications networks. This infrastructure development can provide the foundation for further economic growth and the expansion of businesses, as it will help facilitate the movement of goods, services, and people, as well as the sharing of information. Furthermore, the development of this infrastructure will lead to increased access to international markets and greater economic stability and prosperity.

Third, economic development can have a positive impact on Ghana’s business environment. The development of a strong and vibrant business sector can lead to increased investment, employment, and economic growth. This can be accomplished through the liberalization of the market and the removal of bureaucratic impediments, such as excessive regulation, that hinder the development of businesses. This can lead to a greater number of small and medium-sized enterprises (SMEs), which are often the most dynamic and innovative in any economy. This can help improve the lives of people in Ghana and create more jobs and opportunities.

Possibility of banks in Ghana collapsing amidst debt restructuring and uncertainties in financial markets: The financial stability of Ghana is dependent on the banking sector. The banking sector is one of the major sources of foreign capital in the economy and it is largely responsible for the stability and growth of the economy. However, with the current debt restructuring and uncertainties in financial markets, there is a risk of banks collapsing in Ghana. Ghana is an emerging market economy that has managed to achieve high growth rates in the past decade which is the result of prudent macroeconomic policies and a sound legal framework. The country’s Gross Domestic Product (GDP) has been growing steadily, with a peak of 7.6% growth in 2017. In 2019, real GDP growth was estimated to reach 8.8%, driven by strong performance in the services, industry and agriculture sectors. The country’s nominal GDP was estimated at $57 billion in 2019.

However, the economy has been facing several challenges in the recent past. The country has been facing rising inflation, declining currency, and increasing debt levels, which have had a major impact on the banking sector and the economy as a whole.

The banking system in Ghana plays a major role in the economy, and is the backbone of the financial system. Recently, the country has been through several rounds of economic turmoil and the banking sector has been at the center of the turbulence. As a result, observers have been speculating on the potential collapse of banks in Ghana and the potential implications for the economy and the people of Ghana.

At the end of 2019, there were 32 commercial banks operating in the country, including foreign-owned banks. The banking sector has been facing several challenges over the past few years. The sector has been affected by high levels of bad debt, falling profitability and rising costs. In addition, the sector has been plagued by inadequate capitalization, weak corporate governance and a lack of transparency.

The Ghanaian economy has been facing a severe economic crisis over the past few years. This crisis has been triggered by several factors, including rising inflation, declining currency, and increasing debt levels. The crisis has had a major impact on the banking sector, as well as the wider economy. In an effort to address the economic crisis, the government of Ghana requested assistance from the International Monetary Fund (IMF). In 2016, the Ghanaian government and the IMF signed a three-year Extended Credit Facility (ECF) Program, with the aim of restoring macroeconomic stability, reducing poverty, and promoting private sector-led growth. Under the program, the IMF provided $918 million in financing and policy advice.

Given the challenging economic situation in Ghana, there is a possibility that some banks could collapse if the country’s economic situation does not improve. The banking sector has been facing several challenges in recent years, including inadequate capitalization, weak corporate governance, and a lack of transparency. In addition, the sector is facing rising non-performing loans and increasing costs. These factors could potentially lead to the collapse of some banks in the country.

The IMF program in Ghana is aimed at restoring macroeconomic stability, reducing poverty, and promoting private sector-led growth. The program has been successful in restoring stability, however, it is likely that the program will not be able to address the underlying causes of the banking sector’s decline, such as weak corporate governance and a lack of transparency.

The collapse of banks in Ghana could have major implications for the economy and the people of Ghana. Banks play an essential role in the economy, providing vital financial services to businesses and individuals. If banks collapse, it could lead to a disruption of the financial system, leading to job losses and reduced economic activity. In addition, it could lead to a significant increase in poverty levels as people may not have access to the financial services they need.

The main cause of financial instability in Ghana is the increasing debt burden. As of December 2019, total public debt of Ghana was estimated at 75.3% of the GDP. This is among the highest in Africa and the rising debt burden has increased the risk of the banking system becoming vulnerable. In addition, the government has adopted policies that have resulted in the weak fiscal position of the country. This has led to poor fiscal discipline and fiscal deficit, which have been exacerbated by the lack of diversification of the economy.

In addition, there are several other underlying factors that have contributed to the instability of the banking sector in Ghana. These include the increasing reliance on foreign currency loans, the high levels of non-performing loans, and weak corporate governance. These have increased the vulnerability of the banking sector to risks such as interest rate and liquidity shocks.

The global financial crisis of 2022 and its aftermath had a lasting impact on financial markets around the world. This has led to a situation of market volatility, with the uncertainty of the economic and financial outlook making investing difficult. This has become more evident in the last couple of years, with the uncertainty surrounding the Russain-Ukraine war, COVID and other geopolitical tensions resulting in a lack of investor confidence. This has further weakened the banking sector in Ghana, as investors are increasingly cautious about investing in the country due to the risks of market instability.

The banking sector in Ghana is highly exposed to the risk of collapse due to the rising debt burden and the uncertainty in global financial markets. The rising debt burden has increased the vulnerability of the banking sector to risks such as interest rate and liquidity shocks. In addition, the uncertainty in global financial markets and the weak corporate governance have increased the risk of default, as investors are increasingly reluctant to invest in the country. This has resulted in a decrease in the availability of credit and a decrease in investment. Another challenge for banks in Ghana is the high level of non-performing loans, which has resulted in a decrease in the profitability of banks. This has resulted in an increase in the risk of insolvency and a decrease in the availability of capital. The banking sector in Ghana is highly exposed to risks such as an increase in debt, uncertainty in global financial markets, and weak corporate governance. These risks have increased the possibility of banks in Ghana collapsing amidst debt restructuring and uncertainties in financial markets. As such, it is important for the government to take measures to address the underlying causes of financial instability and incentivize investors to invest in the banking sector. This will help to reduce the risk of bank collapse and ensure the stability of the banking sector in Ghana.

Finally, increased economic development in Ghana can lead to the development of the nation’s natural resources, such as its oil reserves. The development of these resources can provide an important source of revenue, create economic growth, and help to reduce poverty. Furthermore, it can also lead to an increase in foreign investment, which can be used to create more jobs and further economic development.

3. Conclusion

In conclusion, economic development in Ghana can have a profound effect on the nation’s economic growth and well-being. Increased access to health care, education, and financial services can help to reduce poverty, while infrastructure development and the development of the business sector can provide the foundation for further economic growth and the expansion of businesses. Additionally, increased economic development can lead to the development of the nation’s natural resources, providing an important source of revenue and creating economic growth that can reduce poverty and create new jobs.

Overall, it is essential that the government and the regulators take steps to ensure the efficient and effective functioning of the financial market in Ghana in order to promote economic development. This includes strengthening the infrastructure of the financial system, promoting greater financial inclusion and access to credit, and promoting long-term resources and improved liquidity. Additionally, the government must ensure that all debt restructuring agreements are undertaken with the utmost due diligence, as this can have serious implications on the fiscal stance of the government and the overall economic development of the country.