The Minority caucus in Parliament has strongly criticized the government’s decision to reopen the bond market, describing it as ill-advised and risky for Ghana’s economy. Apexnewsgh reports
At the center of the controversy is the timing of the decision, which coincides with the government’s announcement of an elevated fiscal deficit.
According to former Finance Minister Dr. Mohammed Amin Adam, the move by Finance Minister Dr. Cassiel Ato Forson to return to the domestic bond market is poorly timed and could have severe consequences for the country’s fiscal stability. Dr. Amin Adam raised concerns that the government’s approach exposes Ghana to higher borrowing risks, which are already having a negative impact on the economy.
During the 2025 Budget Statement presentation, Dr. Forson announced plans to reopen the domestic bond market to extend the maturity profile. However, Dr. Amin Adam argued that the timing of the announcement is not good advice, given the current state of the economy.
The debate over the reopening of the bond market is expected to intensify, with financial analysts closely monitoring the potential impact on Ghana’s borrowing costs and investor confidence. The government’s decision comes at a time when Ghana is striving to stabilize its economy amid ongoing fiscal challenges.
In recent years, Ghana has made significant progress in stabilizing its economy, with improving macroeconomic indicators such as falling inflation creating favorable conditions for market re-entry.
However, the Minority caucus’s concerns highlight the need for cautious decision-making to ensure that Ghana’s economic progress is not undermined.
Source: Apexnewsgh.com
