The government is set to introduce a new legal framework to regulate public borrowing, in a move aimed at ensuring that loans are channelled into projects that deliver measurable value to the country.
Finance Minister Dr Cassiel Ato Forson disclosed that the proposed Loans Act will form part of ongoing reforms designed to strengthen fiscal discipline and protect Ghana’s long-term debt sustainability.
“As part of this reset, the government will introduce a new Loans Act to strictly define the use of borrowed funds, ensuring that every loan is tied to high-impact, value-for-money investments,” he said.
The initiative is expected to tighten controls around how external and domestic loans are applied, with a renewed focus on investments that directly improve the lives of citizens.
Highlighting the government’s approach, the Finance Minister underscored the importance of prudent borrowing.
“Our guiding principle is simple: whatever we borrow must be worth it and must deliver tangible benefits to the Ghanaian people,” he stated.
The announcement comes alongside continued efforts to restructure Ghana’s debt. Dr. Forson revealed that the country has secured another bilateral agreement, bringing the total number of such deals to eleven.
“I recently signed Ghana’s 11th bilateral debt restructuring agreement, this time with EXIM India,” he noted, referring to the Export-Import Bank of India.
He indicated that these steps are beginning to yield positive results, with signs pointing to improving economic stability.
“We are moving steadily towards a low risk of debt distress, with clear indicators that the worst is behind us,” Dr. Forson said.
Reaffirming government’s commitment to fiscal responsibility, he assured that Ghana will meet its restructured debt obligations while steering clear of excessive borrowing.
“Ghana will not return to a path of unsustainable borrowing,” he emphasised.
The proposed Loans Act is expected to introduce stricter guidelines that will ensure every borrowed cedi is invested in projects that offer clear, measurable benefits, reinforcing transparency and accountability in the country’s financial management.
