Walewale: The Member of Parliament for Walewale, Tiah Abdul-Kabiru Mahama, has raised concerns over the government's decision to resume domestic bond issuance, suggesting it might lead to rapid debt accumulation. This criticism comes in the wake of a press release issued by the Ministry of Finance (Ghana) on March 2, 2026, announcing the expiration of restrictions on new domestic bond issuance that were induced by the Domestic Debt Exchange Programme (DDEP).
According to Ghana Web, the Ministry of Finance explained that the three-year restriction was implemented in 2023 following Ghana's debt default and the subsequent DDEP. With the expiration of this restriction, the government aims to reduce its dependence on short-term Treasury bills by issuing longer-dated domestic bonds. The Ministry highlighted that the decision is backed by low inflation, improved investor confidence, and a strengthened macroeconomic environment, all supported by a medium-term debt management strategy and financial buffers.
The release emphasized that since 2025, the government has consistently met all coupon payments and obligations under the restructured bonds, showcasing fiscal discipline and a commitment to responsible debt management. The administration of President John Dramani Mahama expressed gratitude to Ghanaians for their cooperation during the restructuring phase.
In response, Dr Mahama expressed concerns via a social media post on March 2, 2026, arguing that the government seems eager to resume borrowing in the domestic market using medium to long-term instruments. He pointed out that this decision is being made amidst weakening revenue performance and the diminishing fiscal space that was created by the DDEP, as the government resumes payments on renegotiated instruments.
Dr Mahama further criticized the government's approach, suggesting that its policy of cutting spending should have led to a reduced appetite for borrowing. Instead, he accused the government of hastily pursuing borrowing to finance ambitious infrastructure projects and fulfill promises, despite struggling to meet compensation commitments such as payments to teachers and nurses. He warned that this approach could lead to another cycle of debt accumulation, despite claims of securing low rates and favorable deals.