President Mahama reiterated the commitment of his administration to meet Ghana’s debt obligations while strengthening the country’s financial buffers to support economic recovery. He highlighted the importance of disciplined fiscal management and proactive debt strategies, citing recent accomplishments in debt servicing and plans to reactivate stalled projects.
Accra, Feb. 27, GNA – In his first State of the Nation Address, President John Dramani Mahama emphasized his administration’s dedication to fulfilling Ghana’s debt obligations and enhancing the nation’s financial resilience for economic recovery. He highlighted the issue of mounting debt and stalled infrastructure projects inherited from the previous administration.
President Mahama pointed out that disciplined fiscal management, underpinned by proactive debt repayment strategies and improvements to the Sinking Fund, are essential for Ghana’s recovery. He referred to recent successes in debt servicing as indicators of the country’s renewed credibility.
He noted the successful resolution of GHS 6.08 billion in cash and GHS 3.46 billion in-kind coupon payments associated with bonds from the Domestic Debt Exchange Programme in February 2025. Additionally, he mentioned the acquisition of further buffers in the Sinking Fund to ensure timely debt repayments.
“We are not just managing debts, we are rebuilding trust. The buffers we establish today safeguard tomorrow’s stability and signal to every citizen and investor that Ghana honours its word,” the President stated. He acknowledged the broader economic challenges resulting from prior mismanagement, including 55 stalled infrastructure projects valued at $2.95 billion.
The President articulated that the country faces approximately GHS 15 billion in projected cost overruns due to these stalled projects, emphasizing the negative impact on public services and economic growth. He discussed the need for strict adherence to debt sustainability measures as crucial to facilitating economic recovery.
In conclusion, he stated, “Every cedi saved through prudent debt management is a cedi redirected toward reviving these critical projects.” Furthermore, he assured that his administration would prioritize fiscal discipline while efforts are made to initiate the stalled projects once more.
President Mahama has pledged to improve Ghana’s financial stability through effective debt management and proactive strategies. By addressing the accumulated debt and resuming stalled infrastructure projects, the administration aims to ensure economic recovery and public service growth. The commitment to fiscal discipline highlights the importance of restoring trust and honoring financial obligations to both citizens and investors.
Original Source: gna.org.gh
