The Minister-Designate for Finance, Dr. Cassiel Ato Forson, has said that the new administration will establish an independent debt management office to ensure transparency in Ghana’s debt issues.
He said the Office will address Ghana’s debt restructuring program to address the challenges it imposed on the country and its citizens.
The Domestic Debt Exchange Programme, introduced as a response to Ghana’s mounting debt crisis, has had far-reaching effects on both the country’s financial sector and its citizens.
The programme saw the restructuring of domestic bonds and debts, resulting in significant losses for creditors and a complex repayment schedule that has raised concerns about Ghana’s fiscal sustainability in the years to come.
Ato Forson, however, expressed his commitment to resolving these issues and ensuring that the country remains on a path toward financial recovery and economic stability.
He said currently, Ghana is in debt of GH₵700 billion, hence the debt management office will help strategize techniques to pay off these debts.
“We will do whatever it takes to clear the harms of Ghana’s debt, we will have to pay off our domestic debts,” he added.
The Finance Minister-designate said currently Ghana does not have buffers to clear its debts, therefore the incoming government must have buffers in stock to clear previous debts.
He suggested the use of gold by preserving Ghana’s gold to pay off its debts. This strategic move, according to him, would not only strengthen Ghana’s fiscal position but also build investor confidence in the economy. He emphasized that the reliance on gold as a resource reflects the country’s potential to overcome its debt challenges.
He added that his term of office would not default upon paying the country’s debt.
Ultimately, he said the debt management debt office would help ensure effective management of government debt for the future, prioritizing transparency and sustainability to avoid future crises.
This office will also collaborate with international stakeholders to ensure Ghana’s debt management strategies are globally aligned.
