The Minority caucus in Parliament has fiercely opposed the government’s decision to reopen the domestic bond market, warning that the move is poorly timed and could further destabilize Ghana’s fragile economy.
At a press conference on Thursday, March 13, 2025, former Finance Minister Dr. Mohammed Amin Adam criticized Finance Minister Dr. Cassiel Ato Forson’s announcement, arguing that re-entering the bond market at this point poses significant fiscal risks.
Dr. Forson, in presenting the 2025 Budget Statement on March 11, had stated:
“Mr. Speaker, 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.”
However, Dr. Amin Adam dismissed this move as reckless, stating that the government’s decision coincides with an increasing fiscal deficit, which he claims is based on manipulated economic data.
“Despite supposed improvements in the debt environment, the decision to re-enter the bond market at this time is unwise,” he remarked.
He warned that the move could increase Ghana’s borrowing risks and further strain the economy, arguing that presenting inaccurate fiscal data has already worsened the country’s economic outlook.
“By releasing misleading deficit figures just to score political points, the government has triggered a rise in Ghana’s sovereign bond spreads, which are now approaching 700 basis points,” Dr. Amin Adam stated.
The Minority’s objections come as Ghana continues to grapple with economic recovery efforts. Financial analysts are closely monitoring the situation, with concerns that reopening the bond market under these conditions could lead to higher borrowing costs and weaken investor confidence.
