Accra, Ghana — The Member of Parliament for Walewale, Tiah Abdul‑Kabiru Mahama, has strongly criticised the government’s move to resume domestic bond issuance, saying it reflects a reckless rush back into borrowing despite lingering economic vulnerabilities.
The criticism comes as the Ministry of Finance announced that a three‑year ban on issuing new domestic bonds — imposed after Ghana’s debt default and as part of the Domestic Debt Exchange Programme (DDEP) — has now expired, opening the way for the government to return to the local debt market with longer‑dated instruments.
In a statement on social media, the finance minister, Dr. Cassiel Ato Forson, said the restrictions were lifted because macroeconomic conditions have improved, with inflation declining and investor confidence returning. Officials argue that issuing longer‑term bonds will reduce reliance on short‑term Treasury bills for budget financing and help lengthen the maturity profile of public debt.
However, Mr. Mahama criticised the timing of the decision, arguing that the government appears eager to borrow again even as fiscal pressures remain and public debate continues over spending priorities. He said the move contradicts rhetoric about tightening expenditure and could risk crowding out private sector credit if domestic debt grows too swiftly.
Economists have noted that although the ban’s expiry reflects progress in stabilising the economy, excessive reliance on domestic borrowing could carry risks – especially if it diverts financing away from the private sector or drives up interest costs over time.
