Dr. Mohammed Amin Adam, the finance minister, has assured Ghanaians and Investors of the government’s commitment to avoiding a return to a debt crisis, following the recent debt restructuring.
He characterised the Domestic Debt Exchange Programme (DDEP) as a “painful exercise,” emphasising that the government would focus on implementing comprehensive reforms to enhance resilience, moving forward.
Dr. Adam made the remarks during discussions on the sidelines of the 2024 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) in Washington, D.C.
“The DDEP we did was a very painful exercise because people did not expect that. So, to have taken the people of Ghana through this exercise has meant that they had to sacrifice beyond what many people could do,” he said.
“The sacrifice of our people in biting part of the bullet before we went out to do the external debt restructuring made the bilateral creditors, as well as our Eurobond holders saw Ghana’s seriousness and readiness to change,” he added.
Dr. Adam noted that the government had learned from the sacrifices made by Ghanaians during the DDEP, which has motivated them to avoid returning to an era of unsustainable debt.
To achieve this goal, he mentioned that the government planned to implement significant structural reforms, including amendments to the Fiscal Responsibility Act to establish a debt ceiling for the government.
“We’re seeking amendments to the existing legislation to impose debt limit on ourselves, and we’re also putting in place, a Fiscal Council to ensure compliance with rules,” he said.
The finance minister explained that an independent Fiscal Council will be established outside the government to monitor the country’s debt management, focusing on borrowing and repayment, while ensuring debts remain within set limits.
The council will publish reports quarterly and biannually on the country’s debt levels in a transparent manner, allowing the public to track progress.
Dr. Amin Adam emphasised that the challenging DDEP had facilitated a quicker agreement on external debt, highlighting the country’s willingness to make sacrifices.
He noted that the country saved $12 billion from external debt restructuring with bilateral and Eurobond creditors through cancellations and debt service relief.
Meanwhile, IMANI Africa and Oxfam Ghana have called for an empowered Fiscal Council after finding GHS4.9 billion losses due to financial irregularities, attributed to the Ministry of Finance and its auxiliary agencies.
Their recent Fiscal Recklessness Index on Ministries, Departments, and Agencies (MDAs) and the Fiscal Council also called for stronger systems to improve inefficiency in tax collection.
By Francis Ntow
GNA
