Ghana is set to roll out a new Loans Act aimed at regulating the use of borrowed funds and ensuring that every loan is linked to high-impact, value-for-money projects, Finance Minister Dr Cassiel Ato Forson has announced.
In a Facebook post on Monday, March 30, Dr Forson said the legislation is part of broader reforms designed to strengthen fiscal discipline and safeguard the country’s debt sustainability.
“As part of this reset, the government will introduce a new Loans Act to strictly define the use of borrowed funds, ensuring that every loan is tied to high-impact, value-for-money investments,” he said.
The Finance Minister emphasized that Ghana’s borrowing strategy will prioritize projects that deliver tangible benefits to citizens.
“Our guiding principle is simple: whatever we borrow must be worth it and must deliver real benefits to the Ghanaian people,” he added.
Dr Forson made the announcement alongside news that Ghana has signed its 11th bilateral debt restructuring agreement, this time with the Export-Import Bank of India. He described the move as part of ongoing efforts to stabilize the economy and reduce the national debt burden.
“I recently signed Ghana’s 11th bilateral debt restructuring agreement, this time with EXIM India. Key economic indicators suggest the country is gradually moving towards a low risk of debt distress,” he said.
The Finance Minister also reaffirmed the government’s commitment to honoring all restructured obligations on time and avoiding a return to unsustainable borrowing practices that contributed to the country’s recent financial challenges.
“Ghana will not return to a path of unsustainable borrowing,” Dr Forson stressed.
According to Dr Forson, the new Loans Act will ensure that all future borrowing is strictly linked to projects with measurable benefits for Ghanaians, reinforcing the government’s focus on fiscal accountability and long-term debt sustainability.