The Government of Ghana is preparing to introduce a new Loans Act aimed at tightening control over how borrowed funds are used, in a move designed to promote fiscal discipline and protect the country’s long-term economic stability.
Finance Minister Dr. Cassiel Ato Forson says the proposed legislation will ensure that future loans are strictly tied to projects that deliver real value to the Ghanaian people. The initiative forms part of a broader “fiscal reset” strategy following recent economic challenges and debt pressures.
Announcing the plan, Dr. Forson stressed that the era of loosely managed borrowing must give way to a more responsible approach.
“Every loan must be tied to high-impact, value-for-money investments,” he stated.
According to him, the government’s new borrowing framework will prioritise projects that produce clear, measurable benefits rather than initiatives with limited national impact.
“Our guiding principle is simple: whatever we borrow must be worth it and must deliver tangible benefits to the Ghanaian people.”
The move comes as Ghana continues to make progress in its debt restructuring programme. The Finance Minister recently confirmed the signing of the country’s 11th bilateral debt restructuring agreement, this time with India’s Export-Import Bank.
Dr. Forson believes these efforts are beginning to yield results, with key economic indicators pointing to gradual recovery and reduced financial risk.
“We are moving steadily towards a low risk of debt distress, with clear indicators that the worst is behind us.”
He also reassured both citizens and investors that the government remains committed to honouring its debt obligations while avoiding a return to excessive borrowing.
“Ghana will not return to a path of unsustainable borrowing,” he emphasised.
The proposed Loans Act is expected to strengthen accountability in public financial management by ensuring that borrowing decisions are aligned with projects that generate real economic returns. Authorities say this is a crucial step toward restoring macroeconomic stability and rebuilding investor confidence in Ghana’s economy.
