The ratings on the Republic of Ghana are constrained by: High general government debt, estimated at 97% of GDP in 2003. Ghana's external debt is mostly long-term and concessional, and will decline significantly owing to the Heavily Indebted Poor Country (HIPC) initiative. However, the domestic debt burden is significant, as it is mostly short-term and at high rates of interest. Interest payments should account for 26% of general government revenues in 2003. A low level of economic development, with per capita GDP estimated at $374 in 2003. Although Ghana has made great strides in reducing poverty, infrastructure deficiencies, institutional weaknesses, and a legacy of macroeconomic instability constrain economic diversification and the country's medium-term growth prospects. Weak fiscal flexibility and expenditure
