Finance Minister Dr. Cassiel Ato Forson has addressed concerns regarding the Mahama administration’s borrowing, clarifying that the government’s net borrowing stands at GHS7.1 billion. He emphasized that this borrowing primarily serves as a buffer for servicing maturing debts inherited from the previous NPP government under President Akufo-Addo and Vice President Bawumia.
Dr. Forson provided a breakdown of the government’s borrowing activities, stating that total Treasury Bill (T-Bill) bids received by the Mahama administration since January 10, 2025, amount to GHS89.7 billion. Out of this figure, GHS59.5 billion in T-Bill bids were accepted as rollovers to settle existing debt obligations, while GHS30.2 billion in bids were rejected. This approach, according to the Finance Minister, demonstrates the government’s commitment to responsible debt management and its effort to stabilize the economy without accumulating excessive new debt.
He further explained that the net borrowing figure of GHS7.1 billion represents the difference between total borrowing and repayments, stressing that the Mahama government has implemented prudent public debt management measures. These measures, he noted, have significantly improved investor confidence in Ghana’s economy. One of the most notable indicators of this progress is the sharp decline in the 91-day Treasury Bill rate, which has dropped from 28.34% to 20.79% in just 50 days under the Mahama administration. This reduction in interest rates signals a renewed sense of trust among investors and financial markets in the government’s economic policies.
The Finance Minister reiterated that the Mahama government remains focused on stabilizing the economy while ensuring that Ghana does not fall deeper into unsustainable debt levels. He assured the public that borrowing is being handled with caution, and the government is working tirelessly to strengthen the country’s fiscal position without overburdening future generations. He pointed out that the inherited debt from the previous administration required careful management to prevent further economic distress. Therefore, the government has been rolling over these debts while limiting fresh borrowing, a strategy that he believes will gradually improve the country’s financial health.
Dr. Forson also addressed concerns from critics who argue that the Mahama administration is engaging in excessive borrowing. He dismissed these claims, urging Ghanaians to focus on the facts and data available. He emphasized that the figures speak for themselves and prove that the government is not recklessly increasing the national debt. Instead, the administration is prioritizing sustainable economic policies that will foster growth and development. He further noted that the reduction in Treasury Bill rates is a testament to the market’s confidence in the government’s ability to manage the economy efficiently.
The Finance Minister also took the opportunity to highlight the broader economic implications of the government’s financial strategies. He explained that lower interest rates on Treasury Bills mean that businesses and individuals will have greater access to affordable credit. This, in turn, will boost investment, create jobs, and stimulate economic activity. He assured that the Mahama government remains committed to implementing policies that will drive economic recovery and improve the living standards of Ghanaians.
Dr. Forson also called on financial analysts, economists, and industry stakeholders to support the government’s efforts by providing constructive feedback and working collaboratively to ensure the success of Ghana’s economic agenda. He reiterated that the administration is open to dialogue and welcomes innovative ideas that can contribute to the country’s financial stability.
He further urged Ghanaians to ignore the naysayers who attempt to misrepresent the government’s borrowing strategy. According to him, the opposition is trying to create unnecessary panic by distorting facts and misleading the public about the state of the economy. He reassured the people that the Mahama administration is focused on maintaining transparency and accountability in all financial dealings.
Dr. Forson also acknowledged that while the economy still faces some challenges, the current administration is taking concrete steps to address them. He stated that the government is working on several policy interventions aimed at increasing domestic revenue, reducing unnecessary expenditures, and promoting fiscal discipline. These efforts, he believes, will further strengthen the economy and put Ghana on a path to long-term stability.
In addition to debt management, the Finance Minister highlighted the importance of improving key sectors such as agriculture, manufacturing, and infrastructure development. He explained that the Mahama government is prioritizing investments in these sectors to drive economic growth and create job opportunities for the youth. He stressed that sustainable economic development requires a holistic approach that goes beyond just managing debt, and the government is committed to implementing policies that will yield tangible benefits for all Ghanaians.
Dr. Forson also reassured international development partners and investors that Ghana remains a stable and promising investment destination. He pointed out that the reduction in Treasury Bill rates is a clear indication that the country’s economic outlook is improving. He encouraged foreign investors to take advantage of the opportunities available in Ghana and contribute to the country’s growth and development.
As part of the government’s commitment to fiscal responsibility, the Finance Minister announced that stricter measures will be put in place to ensure that public funds are used efficiently. He noted that financial discipline is key to achieving long-term economic stability, and the government will not tolerate any form of financial mismanagement or wasteful spending. He emphasized that every cedi borrowed must be used for productive purposes that benefit the nation.
Dr. Forson concluded by reaffirming the Mahama administration’s dedication to restoring confidence in Ghana’s economy. He assured that the government will continue to implement policies that promote economic growth, protect the welfare of citizens, and ensure that Ghana’s financial future remains secure. He encouraged all Ghanaians to support the government’s efforts and work together towards building a stronger and more resilient economy.
With the government’s clear strategy for managing debt and improving economic conditions, there is optimism that Ghana will experience a period of stability and growth under President Mahama’s leadership. The Finance Minister’s assurances provide a strong indication that the administration is committed to making informed and responsible financial decisions that will benefit the nation in the long run.
