President Mahama Commits to Strengthening Financial Buffers for Debt Repayment
President John Dramani Mahama pledged to enhance Ghana’s financial buffers for debt servicing during his State of the Nation Address. He highlighted the importance of disciplined fiscal management and proactive measures to ensure timely repayments. The administration seeks to revive stalled infrastructure projects impacted by past mismanagement and aims to restore economic stability through sound debt management practices.
On February 27, President John Dramani Mahama reaffirmed his administration’s dedication to fulfilling Ghana’s debt obligations while reinforcing the country’s financial buffers aimed at fostering economic recovery. During his inaugural State of the Nation Address in Accra, he criticized the previous administration for its accumulation of debt and halted infrastructure projects.
The President advocated for disciplined fiscal management, emphasizing proactive debt repayment strategies, particularly through an enhanced Sinking Fund. He claimed that these measures are crucial to restoring Ghana’s economic standing.
Progress in debt servicing was highlighted through the successful settlement of GHS 6.08 billion in cash and GHS 3.46 billion in-kind coupon payments as part of the Domestic Debt Exchange Programme (DDEP). This progress illustrates Ghana’s renewed credibility regarding financial commitments, according to Mr. Mahama.
To ensure timely repayments for upcoming DDEP maturities in July and August, he mentioned the establishment of additional buffers within the Sinking Fund, stating that Ghana is committed to rebuilding trust. Furthermore, he acknowledged the economic repercussions of past mismanagement, which has resulted in 55 stalled infrastructure projects valued at $2.95 billion and projected cost overruns of GHS 15 billion.
The President emphasized that such unresolved debts hinder public service provision and economic growth, necessitating adherence to debt sustainability measures for recovery. He asserted, “Every cedi saved through prudent debt management is a cedi redirected toward reviving these critical projects.” Moreover, Mahama pledged to prioritize fiscal discipline while working to reactivate stalled developments.
In conclusion, President Mahama’s address underscores a strong commitment to addressing Ghana’s debt challenges while instilling fiscal discipline. By enhancing financial buffers and emphasizing proactive debt management, the administration aims to restore economic stability and resume vital infrastructure projects critical to national growth. The President’s approach reflects a serious intent to rebuild trust with both citizens and investors alike.
Original Source: gna.org.gh
