Accra: Dr Cassiel Ato Forson, the Minister of Finance, announced on Tuesday that the Government plans to cautiously reopen the domestic bond market as part of efforts to extend the maturity profile. This move aims to establish large-sized benchmark bonds to enhance market liquidity.
According to Ghana News Agency, the Minister made this announcement while presenting the 2025 Budget Statement and Economic Policy to Parliament in Accra. The presentation was themed 'Resetting the Economy for the Ghana We Want.' Dr Forson emphasized that to further mitigate risks associated with the debt portfolio, the Government intends to build sufficient cash buffers, which will support the effective implementation of liability management strategies.
Dr Forson explained that smoothing the redemption profile and mitigating refinancing and rollover risks are key objectives of the Government's strategy. To achieve this, liability management operations will be implemented in 2025 and the medium term to address risks embedded in the Eurobond debt portfolio.
Furthermore, Dr Forson revealed that starting in 2025, the Government will operationalize sections 37 to 44 of the Public Financial Management Act, 2016 (Act 921) for the first time since the Act's passage in August 2016. This initiative aims to build sufficient buffers in the Sinking Fund as a landmark reform to effectively manage public debt.
