Ghana to introduce Loans Act for accountable borrowing

Ghana is set to introduce a new Loans Act to regulate the use of borrowed funds, ensuring that every loan is tied to high-impact, value-for-money investments, Finance Minister Dr Cassiel Ato Forson has announced.

In a Facebook post on Monday, March 30, Dr. Forson explained that the legislation forms part of broader reforms 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 stressed that Ghana’s borrowing strategy will prioritise projects that deliver tangible benefits to citizens, saying:

“Our guiding principle is simple: whatever we borrow must be worth it and must deliver tangible benefits to the Ghanaian people.”

Dr. Forson made the announcement alongside news that Ghana has signed its 11th bilateral debt restructuring agreement, this time with Export-Import Bank of India, a move he described as part of ongoing measures to stabilise the economy and reduce the national debt burden.

“I recently signed Ghana’s 11th bilateral debt restructuring agreement, this time with EXIM India,” he noted, adding that key economic indicators suggest the country is gradually moving towards a low risk of debt distress.

“We are moving steadily towards a low risk of debt distress, with clear indicators that the worst is behind us,” Dr. Forson said.

He reaffirmed the government’s commitment to honour all restructured obligations on time and to avoid a return to unsustainable borrowing, which contributed to the country’s recent financial challenges.

“Ghana will not return to a path of unsustainable borrowing,” he emphasised.

The new Loans Act, Dr. Forson said, is expected to ensure that all future borrowing is strictly linked to projects that provide real, measurable benefits to Ghanaians, reinforcing the government’s focus on debt sustainability and fiscal accountability.