Finance Minister Defends Borrowing Strategy, Says Net Debt Stands——-Finance Minister Dr. Cassiel Ato Forson has defended the government’s borrowing strategy, emphasizing that it is focused on debt refinancing rather than excessive new borrowing. In a detailed post on X (formerly Twitter), Dr. Forson explained that since January 10, 2025, the government has received a total of GHS 89.7 billion in Treasury Bill (T-Bill) bids. Of this, GHS 59.5 billion in bids were accepted to roll over and refinance maturing debts, while GHS 30.2 billion worth of bids were rejected.
He stressed that this approach reflects prudent public debt management, which has minimized the net impact on the country’s total debt. This counters the perception that the government is taking on unsustainable liabilities, Dr. Forson noted, highlighting that refinancing maturing debts has been prioritized over excessive new borrowing.
One of the most significant developments under the Mahama administration, Dr. Forson pointed out, is the sharp reduction in the 91-day T-Bill rate. The rate has fallen from 28.34% to 20.79% in just 50 days. Dr. Forson attributed this improvement to renewed investor confidence in Ghana‘s economic policies and a more stable macroeconomic outlook. The reduction in the T-Bill rate, he argued, indicates a growing sense of financial stability and shows that the government’s fiscal policies are beginning to yield positive results.
The Finance Minister urged the public to look beyond the criticisms of government borrowing and instead focus on the broader economic benefits derived from sound fiscal management. By prioritizing debt refinancing over accumulating excessive new debts, the government’s aim is to reduce Ghana’s overall debt burden, stabilize inflation, and create a more predictable environment for investors.
Dr. Forson acknowledged that while Ghana’s debt situation remains a concern for both local and international investors, the government’s strategy of measured, strategic borrowing has the potential to lead to lower borrowing costs in the future. This, in turn, would open up fiscal space for further economic expansion and improve Ghana’s long-term economic resilience.
In the face of tightening global economic conditions, Ghana’s approach to fiscal discipline and prudent borrowing will continue to be closely watched in the coming months. As developing economies like Ghana are under increased scrutiny for their fiscal management, the Mahama administration’s efforts to rein in excessive borrowing could serve as a model for how emerging economies can balance debt sustainability with long-term growth.
However, the critical question remains: Can Ghana sustain this disciplined path of borrowing while fostering long-term economic growth? The coming months will reveal whether the current approach will hold, allowing the country to manage its debt effectively without stifling its growth potential.
