President John Dramani Mahama has committed to enhancing Ghana’s financial buffers to meet debt obligations and stimulate economic recovery. In his State of the Nation Address, he criticized previous administration’s mismanagement that led to debt accumulation and stalled projects. He stressed disciplined fiscal management and the importance of trust in correcting these issues.
President John Dramani Mahama has reaffirmed his administration’s dedication to fulfilling Ghana’s debt commitments while enhancing the country’s financial buffers to facilitate economic recovery. During his inaugural State of the Nation Address to Parliament, he criticized the excessive debt and the halted infrastructure projects left by the previous administration. He emphasized that disciplined fiscal management and proactive debt repayment, bolstered by a strengthened Sinking Fund, will drive the nation towards recovery.
Mr. Mahama highlighted recent achievements in debt servicing, noting Ghana’s improved credibility. He reported the successful handling of GHS 6.08 billion in cash and GHS 3.46 billion in-kind coupon payments under the Domestic Debt Exchange Programme (DDEP) in February 2025. Furthermore, he assured that additional financial buffers would be secured in the Sinking Fund to accommodate DDEP maturities due in the upcoming months, thereby preventing repayment delays.
The President articulated, “We are not just managing debts, we are rebuilding trust. The buffers we establish today safeguard tomorrow’s stability and signal to every citizen and investor that Ghana honours its word.” He also addressed the economic repercussions of previous mismanagement, which included 55 stalled infrastructure projects worth $2.95 billion and projected overruns of GHS 15 billion in costs.
He noted the burdens these debt obligations placed on public services and economic growth, reinforcing the urgency of executing debt sustainability measures for Ghana’s recovery. He stated, “Every cedi saved through prudent debt management is a cedi redirected toward reviving these critical projects,” underscoring his commitment to fiscal discipline while striving to resume stalled projects.
In conclusion, President Mahama’s address highlights a proactive approach towards addressing Ghana’s debt challenges and infrastructure needs. By establishing financial buffers and emphasizing fiscal discipline, his administration aims to restore trust in the nation’s economic management. This strategy intends not only to honor existing debt obligations but also to stimulate growth and improve public services, ensuring a more stable financial future for Ghana.
Original Source: gna.org.gh
