As part of measures to stabilize Ghana’s economy and restore investor confidence, government has paid GH¢12 billion to bondholders under the Domestic Debt Exchange Programme (DDEP).
This was a key highlight in the mid-year budget review presented by the Minister for Finance, Dr. Mohammed Amin Adam in Parliament yesterday.
He emphasised the government’s commitment to fulfilling its financial obligations and ensuring economic stability.
“The payment of GH¢12 billion to bondholders marks a critical step in our efforts to restore confidence in the financial markets and stabilize the economy.
“This payment is a testament to our commitment to fiscal discipline and prudent financial management,” Dr. Amin Adam stated.
The Minister for Finance detailed how this payment aligns with the broader strategy of economic recovery and growth.
The Domestic Debt Exchange Programme, which was introduced to manage and restructure the country’s debt, has been pivotal in achieving these goals.
“Through this programme, we have not only managed to honour our commitments to bondholders but also created a more sustainable debt profile for the nation,” Dr. Amin Adam explained.
This financial manoeuvre is part of a broader set of measures aimed at improving the macroeconomic environment.
Dr. Amin Adam highlighted that the government has also made significant strides in stabilizing inflation and the exchange rate.
“Since 2022, inflation has dropped by 31 percentage points, and the exchange rate has shown signs of stabilization. These are critical indicators of our economic resilience and recovery,” he noted.
Dr. Amin Adam also announced that Ghana’s international reserves have increased to 3.1 months of import cover, providing a stronger buffer against external shocks.
This improvement, according to Dr. Amin Adam, is attributed to effective fiscal management and strategic negotiations with international partners, including the International Monetary Fund (IMF) and the Paris Club.
The mid-year budget review also underscored the government’s substantial investments in social programmes and infrastructure.
GH¢5.4 Billion spent on LEAP
The Finance Minister disclosed that over GH¢5.4 billion has been disbursed for various social programs, including the Livelihood Empowerment Against Poverty (LEAP) initiative, the School Feeding Programme, and the National Health Insurance Scheme (NHIS).
These programs are essential in providing support to the most vulnerable segments of society.
GH¢10 billion on roads
Finance Minister Dr. Amin Adam said in addition to the expenditures on various sectors of the economy, nearly GH¢10 billion has been invested in the road sector since January 2024.
Key projects include the expansion of the Komfo Anokye Teaching Hospital, the rehabilitation of the Ofankor-Nsawam Road, and ongoing investments in water and sanitation infrastructure.
