Finance Minister Designate, Dr. Cassiel Ato Forson, has announced plans to establish an independent debt management office to ensure transparency and accuracy in Ghana’s debt reporting.
He emphasized that the proposed office would prevent the exclusion of any public liabilities from national debt figures and ensure a more accountable financial reporting system.
During his vetting, on January 13, Dr. Forson highlighted past concerns regarding the exclusion of specific debts from national debt reports, including Ghana’s Energy Sector Levies Act (ESLA) Bond, Sinohydro Loan, and Daakye Bond. He stated that despite these debts being serviced with public funds, they were initially excluded from official debt figures. According to him, the Finance Committee had raised red flags as early as 2020, calling on the government to act, with repeated warnings intensified in 2021.
He explained that it was only after Ghana entered the International Monetary Fund (IMF) program that the government was compelled to include these debts in the national records. He noted that while this validated the opposition’s earlier concerns, the focus should be on learning from past mistakes rather than seeking political vindication.
Addressing exchange rate challenges, Dr. Forson acknowledged the genuine difficulties associated with borrowing in foreign currencies. He noted that currency depreciation often inflates debt figures when measured in the local currency. However, he emphasized that both the Bank of Ghana and the Ministry of Finance share the responsibility for stabilizing the cedi.
He pledged to work closely with the central bank to coordinate fiscal and monetary policies effectively, ensuring the cedi’s stability and reducing the impact of external borrowing on the national debt.
