Government is set to introduce a new Loans Act aimed at fundamentally reshaping how public borrowing is undertaken, with a strict focus on ensuring that every loan contracted delivers measurable economic returns.
The policy direction was announced by Finance Minister Dr. Cassiel Ato Forson following the signing of Ghana’s 11th bilateral debt restructuring agreement with EXIM India, which he described as part of a wider reset of the country’s debt management framework.
Under the proposed law, all government borrowing will be subject to clearer restrictions on usage, with emphasis placed on directing funds toward high-impact investments that generate tangible value for the economy and citizens.
The legislation is expected to eliminate non-essential borrowing and strengthen fiscal discipline by ensuring that financing decisions across government are guided by strict value-for-money principles.
Officials say the move is part of broader efforts to consolidate gains made under Ghana’s ongoing debt restructuring programme, which has helped improve macroeconomic stability and reduce the country’s risk of debt distress.
The Finance Minister stressed that the new legal framework will mark a decisive shift in borrowing culture, ensuring Ghana avoids a return to unsustainable debt accumulation.
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He further noted that future borrowing decisions will be guided by a clear principle: every cedi borrowed must translate into measurable social and economic benefits.
The proposed Loans Act will also complement wider public financial management reforms aimed at improving accountability, boosting investment efficiency, and safeguarding long-term fiscal stability.
