President John Dramani Mahama’s speech outlined his administration’s commitment to strengthen Ghana’s financial management, ensuring debt obligations are met promptly. He highlighted efforts in debt repayment under the Domestic Debt Exchange Programme, plans for establishing financial buffers, and the need to restart stalled infrastructure projects as vital components of the country’s economic recovery strategy.
On February 27, during his State of the Nation Address, President John Dramani Mahama committed to enhancing Ghana’s financial stability by ensuring prompt debt repayment. He criticized the previous government for increasing debt levels and halting essential infrastructure projects. The president emphasized that disciplined fiscal management and a robust Sinking Fund would guide Ghana towards economic recovery.
President Mahama highlighted recent successes in debt management, particularly through the Domestic Debt Exchange Programme (DDEP), where the country effectively disbursed GHS 6.08 billion in cash and GHS 3.46 billion in-kind payments by February 2025. This progress showcases Ghana’s renewed credibility in managing its debt obligations.
To further strengthen the country’s financial position, the President noted the importance of establishing additional buffers in the Sinking Fund to ensure timely payments for future DDEP maturities due in July and August. He stated, “We are not just managing debts, we are rebuilding trust.”
Addressing the repercussions of past fiscal negligence, he cited 55 infrastructure projects worth $2.95 billion that had stagnated, alongside projected cost overruns totaling GHS 15 billion. He underscored how these debt responsibilities hinder public service delivery and economic growth, necessitating a strict adherence to debt sustainability practices.
President Mahama pledged to maintain fiscal discipline while simultaneously reviving stalled projects. He stressed that every cedi saved through effective debt management would be redirected to critical infrastructure improvements, ensuring a sustainable economic recovery for Ghana.
In summary, President Mahama has articulated a clear strategy for addressing Ghana’s debt obligations, emphasizing fiscal discipline and effective management of financial resources. His administration aims to build investor confidence and restore public trust by enhancing the country’s debt repayment mechanisms and reigniting critical infrastructure projects. The commitment to these goals signals a proactive approach to economic recovery and stability.
Original Source: gna.org.gh
