Ghana is set to introduce a new legal framework to regulate the use of borrowed funds, as part of efforts to promote fiscal discipline and ensure long-term debt sustainability.
Announcing the move, Finance Minister Cassiel Ato Forson said the proposed Loans Act will strictly define how loans are utilised, with a focus on directing funds into high-impact, value-for-money investments.
According to him, the initiative forms part of a broader economic reset aimed at strengthening public financial management and preventing a recurrence of unsustainable borrowing practices.
“Our guiding principle is simple—every loan must deliver tangible benefits to the Ghanaian people,” he emphasised.
Dr Forson noted that future borrowing will prioritise projects that generate measurable outcomes and contribute meaningfully to national development.
The announcement comes alongside ongoing efforts to restructure Ghana’s debt. The Finance Minister disclosed that the country has signed its 11th bilateral debt restructuring agreement with the Export-Import Bank of India, describing the move as a significant step toward stabilising the economy and reducing the national debt burden.
He indicated that key economic indicators point to gradual improvement, with Ghana moving steadily toward a lower risk of debt distress.
“We are seeing clear signs that the most challenging phase is behind us,” he stated, expressing optimism about the country’s economic outlook.
Dr Forson also reaffirmed the government’s commitment to meeting all restructured obligations in a timely manner, while maintaining a firm stance against returning to unsustainable borrowing.
The proposed Loans Act is expected to reinforce accountability in public borrowing by ensuring that all future loans are tied to projects that deliver real and measurable benefits, in line with the government’s broader agenda of fiscal responsibility and economic stability.
