Government to re-enter international bond market — Finance Minister

Finance Minister Dr. Cassiel Ato Forson has announced that the government will strategically re-enter the bond market to help finance the budget deficit, extend debt maturities, and restore investor confidence following Ghana’s recent debt restructuring.

During his presentation of the 2026 budget to Parliament, he explained that the plan will be implemented cautiously, beginning with the domestic market and potentially moving to international markets when conditions become favorable.

Dr. Forson noted that the government began re-engaging the domestic bond market in 2025 after completing the Domestic Debt Exchange Programme (DDEP).

The focus now is to issue large benchmark bonds to boost market liquidity and raise funds locally, thereby reducing reliance on external borrowing.

As part of a broader external debt management strategy, the government is also considering a sovereign bond buyback programme and a gradual return to the international capital markets.

These measures are intended to signal financial stability and investor confidence, particularly as the country prepares for a major Eurobond maturity in 2026.

The Finance Minister emphasised that the strategy is anchored on fiscal discipline and maintaining strong macroeconomic fundamentals.

He highlighted improvements in domestic revenue collection, controlled expenditure, and a declining debt-to-GDP ratio, which together have helped strengthen investor sentiment and lower Treasury bill rates.

Dr. Forson further stressed that any new borrowing will be carefully directed toward projects that have long-term economic and social benefits, such as infrastructure development, rather than being used for short-term consumption.

However, Financial analysts have cautioned the government against returning to the international bond market too soon, warning that doing so without stronger economic stability could increase borrowing costs and worsen debt risks.