The government is set to introduce a new Loans Act aimed at tightening oversight of public borrowing and ensuring that all debt contracted delivers clear economic value.
Finance Minister Dr. Cassiel Ato Forson disclosed the plan after Ghana signed its 11th bilateral debt restructuring agreement with EXIM India, describing the move as part of a broader effort to reset the country’s debt management framework.
Under the proposed law, the use of borrowed funds will be strictly defined, with every loan required to support high-impact, value-for-money projects. The measure is intended to curb non-essential borrowing and reinforce fiscal discipline in government financing decisions.
The initiative is part of ongoing efforts to consolidate gains from Ghana’s debt restructuring programme and restore long-term sustainability. Authorities indicate that the country is gradually moving toward a lower risk of debt distress, supported by improving macroeconomic conditions and a consistent record of meeting restructured debt obligations.
Dr. Forson stressed that the legislation will underpin a fundamental shift in borrowing practices, ensuring that Ghana avoids a return to unsustainable debt levels. He noted that future borrowing will be guided by a clear principle—every loan must translate into tangible economic and social benefits for citizens.
The proposed Loans Act will also complement wider public financial management reforms aimed at enhancing accountability, improving the efficiency of public investments, and safeguarding fiscal stability.
Source:
oyerepafmonline.com
