Dr Cassiel Ato Forson, the Minister for Finance, says government’s prudent debt management and declining borrowing costs have generated savings of about GH¢6.2 billion in the first six months of 2026, creating additional fiscal space for priority development spending.
Presenting the 2026 Mid-Year Budget Review in Parliament on Thursday, the Minister said improved investor confidence and disciplined fiscal management had significantly reduced the cost of government borrowing.
He said falling Treasury bill rates and lower bond yields had enabled government to spend far less on interest payments compared to previous years.
“Borrowing costs are down by half. That alone has saved us GH¢6.2 billion in just six months,” Dr Forson said.
He explained that the decline in Treasury bill rates was also translating into lower lending rates across the banking sector, making credit more affordable for households, entrepreneurs and businesses seeking to invest and expand.
The Minister said Ghana’s Eurobond yields had also declined by about 300 basis points since the beginning of the year, reflecting renewed confidence among international investors.
According to him, although international capital markets are gradually reopening to Ghana after years of exclusion following the debt crisis, government would remain cautious in its borrowing strategy.
“Three years ago, Ghana could not borrow on the international capital markets at any price. Today, the markets are inviting us back, but we are not in a hurry,” he said.
Dr Forson said Ghana’s debt-to-GDP ratio had declined to 45 percent, meeting the country’s statutory debt target years ahead of schedule.
He noted that government had also successfully returned to the domestic long-term bond market after raising GH¢2.7 billion through a seven-year cedi-denominated bond issued in April 2026, the first such issuance since the 2022 debt default.
The Minister said the development demonstrated Ghana’s renewed ability to mobilise long-term financing in its own currency while reducing reliance on short-term borrowing.
He assured Parliament that government would continue implementing prudent fiscal policies to sustain debt sustainability, lower borrowing costs and support private sector growth.
