The Institute of Economic Research and Public Policy (IERPP), a policy think tank dedicated to social reform, sound economic management, and responsible governance, has responded to Finance Minister Dr Cassiel Ato Forson on his claim that borrowing primarily serves as a buffer for servicing maturing debts accumulated by the previous New Patriotic Party government.
The finance minister, while addressing concerns about the government’s borrowing, emphasized that the net borrowing by the Mahama administration stands at GHS7.1 billion.
“For the record, total T-Bill bids received by the Mahama government since January 10, 2025, stand at GHS89.7 billion,” Dr Forson stated in a recent X post.
He explained that out of this amount, GHS59.5 billion in T-Bill bids were accepted as rollovers of inherited debt, while GHS30.2 billion in T-Bill bids were rejected.
Dr Forson emphasized that the actual debt accumulation under the Mahama government is virtually zero, thanks to prudent public debt management measures. These measures have led to a significant drop in the 91-day T-Bill rate, from 28.34% to 20.79% in just 50 days, reflecting a strong vote of confidence in the Ghanaian economy by the investor community.
“For the record, total T-Bill bids received by the Mahama government since January 10, 2025, stand at GHS89.7 billion. Of this amount, total T-Bill bids accepted—being rollovers of debt inherited by the Mahama government—stand at GHS59.5 billion, while total T-Bill bids rejected by the government stand at GHS30.2 billion. For the avoidance of doubt, net borrowing by the Mahama government, as of today, stands at GHS7.1 billion.
“This is primarily a buffer for servicing maturing debts accumulated by the NPP/Akufo-Addo/Bawumia government. It is instructive to note that actual debt accumulation under the Mahama government is virtually zero. The prudent public debt management measures adopted by the Mahama government have led to a record-high drop in the 91-day T-Bill rate, from 28.34% to 20.79% in just 50 days—an emphatic vote of confidence in the Ghanaian economy by the investor community. Please ignore the naysayers,” he wrote on his X page.
For the record,
— Cassiel Ato Forson(PhD) (@Cassielforson) March 1, 2025
total T-Bill bids received by the Mahama government since January 10, 2025, stand at GHS89.7 billion.
Of this amount, total T-Bill bids accepted—being rollovers of debt inherited by the Mahama government—stand at GHS59.5 billion, while total T-Bill bids…
But in a statement signed by its Executive Director, Dr Frank Bannor, IERPP said that ‘ What does Ato Forson mean by net borrowing of GhS7 billion? Honorable minister, you have borrowed an amount of GhS67 billion! However, If this argument holds, then Ken Ofori Atta never borrowed. Is government not in continuum?! How does he accept credit for success in external debt forgiveness and now absolve himself from honoring government liabilities?
“To be specific, Government also bought back $117.3 million equivalent to GH¢672 million of the 2023 maturing Eurobond which the NDC had procured in August 2013, and used an amount of $1.257 billion for further liability management operations in the domestic debt market.
“Similarly, out of the $2 billion bond raised in 2018, an additional amount of $830 billion was used to switch the 2022 maturing Eurobond, which had a higher coupon rate of 9.25% the NDC had procured in September 2016, with the remaining amount of $420 million lodged in the Sinking Fund for further liability management.”
The statement stressed that “The honorable finance minister should spare us the financial rhetoric!”
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