The Minority in Parliament has advised Finance Minister Dr. Cassiel Ato Forson to tread cautiously over plans by the government to reopen the bond market, describing it as ill-advised and risky for Ghana’s economy.
The caucus is of the view that the timing was wrong and could pose a serious crisis for the country.
Addressing a press conference on Thursday, March 13, 2025, former Finance Minister Dr. Amin Adam asserted that the move by Finance Minister Dr. Cassiel Ato Forson to return to the domestic bond market is poorly timed and could have severe consequences for the country’s fiscal stability.
His remarks follow an announcement made by the minister that plans were far advanced to reopen the bond market when he presented the budget on March 11, 2025.
“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.”
Dr. Amin Adam reacted, saying, “It’s surprising; nevertheless, notwithstanding the improvement in the debt environment, the timing of the announcement of the minister to enter the bond market is not good advice,” he stated.
“The timing for the announcement of the minister to open the bond market coincided with the announcement of the elevated fiscal deficit based on their manipulated data, a condition that exposes the country to a higher risk of borrowing in the market.
“The effect of this unfortunate data manipulation is already hitting our economy since they read the budget. The government must know that just by presenting such erroneous data to score political points, Ghana’s sovereign bond spreads are already widening, nearing 700 basis points,” he added.
By: Rainbowradioonline.com/Ghana
