Gov’t Announces Loans Act to Rein in Borrowing

The Minister for Finance, Dr Cassiel Ato Forson, has announced plans by the government to rein in borrowing with a new legal framework.

The Loans Act, he said, is part of the government’s reset agenda and seeks to strictly define the use of borrowed funds.

According to him, the Act would ensure that every loan is tied to high-impact, value-for-money investments.

“Our guiding principle is simple: whatever we borrow must be worth it and must deliver tangible benefits to the Ghanaian people.”

He made this known while announcing that the country had reached its 11th bilateral agreement with EXIM India, as the country was moving steadily towards a low risk of debt distress.

“Our commitment is firm: to honour all restructured obligations on time and to keep debt sustainability at the core of every financing decision going forward,” he noted.

Story by Hajara Fuseini

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