Minority Slams Government’s Decision to Reopen Bond Market, Warns of Fiscal Risks
Accra, Ghana – March 13, 2025 – The Minority caucus in Parliament has criticized the government’s plan to reopen the domestic bond market, warning that the move is ill-timed and could destabilize Ghana’s economy.
At a press conference, former Finance Minister Dr. Mohammed Amin Adam cautioned that Finance Minister Dr. Cassiel Ato Forson’s strategy to return to the bond market poses serious financial risks.
Government’s Justification
During the 2025 Budget Statement presentation on March 11, Dr. Forson stated:
🗣️ “The government will take steps to reopen the domestic bond market to extend the maturity profile. The reopening will be executed cautiously to establish large-sized benchmark bonds that will enhance market liquidity.”
Minority’s Concerns
🔻 Bad Timing: Dr. Amin Adam argued that the decision coincides with an elevated fiscal deficit, which he claims is based on manipulated data.
🔻 Higher Borrowing Risks: He warned that reopening the bond market could lead to higher borrowing costs and a widening of Ghana’s sovereign bond spreads.
🔻 Economic Impact: According to him, the move has already affected Ghana’s economic standing, with bond spreads nearing 700 basis points.
A Growing Economic Debate
As Ghana works to stabilize its economy, the government’s strategy to re-enter the bond market has sparked debate among policymakers and financial analysts. The long-term impact on investor confidence and borrowing costs remains to be seen.
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