Minority Cautions Ato Forson: Reopening bond market is ill-timed

The Minority caucus in Parliament has strongly opposed the government’s decision to reopen the bond market, warning that it poses significant risks to Ghana’s economic stability.

At a press conference on Thursday, March 13, 2025, former Finance Minister Dr. Mohammed Amin Adam criticized the move by Finance Minister Dr. Cassiel Ato Forson, arguing that the decision to re-enter the domestic bond market is ill-timed and could have serious consequences for the country’s fiscal health.

During the presentation of the 2025 Budget Statement on Tuesday, March 11, Dr. Forson stated:

“Mr. Speaker, the government will take steps to reopen the domestic bond market to extend the maturity profile. The reopening will be executed cautiously to establish large-sized benchmark bonds that will enhance market liquidity.”

However, Dr. Amin Adam expressed concerns about the timing of this initiative, especially as it coincides with the government’s announcement of a rising fiscal deficit, which he believes is based on manipulated data.

“It’s surprising nevertheless, notwithstanding the improvement in the debt environment, the timing of the announcement of the minister to enter the bond market is not good advice,” he remarked.

He further cautioned that the government’s strategy increases Ghana’s borrowing risks, which are already affecting the economy.

“The timing for the announcement of the minister to open the bond market coincided with the announcement of the elevated fiscal deficit based on their manipulated data, a condition that exposes the country to higher risk of borrowing in the market.

“The effect of this unfortunate data manipulation is already hitting our economy since they read the budget. The government must know that just by presenting such erroneous data to score political points, Ghana’s sovereign bonds spreads are already widening, nearing 700 basis points,” he added.

The Minority’s objections come as Ghana continues to navigate economic challenges, with efforts underway to stabilize the fiscal situation. The debate over the bond market’s reopening is likely to escalate, with financial experts closely monitoring its potential impact on borrowing costs and investor confidence.

GOT A STORY?
Email Daily Mail GH: stories@dailymailgh.com or
Whatsapp: +233(0)509928122