President Mahama Commits to Strengthening Financial Buffers for Debt Repayment

President Mahama has committed to strengthening Ghana’s financial buffers for debt repayment and economic recovery. He criticized previous debt accumulation and stalled projects, promising disciplined fiscal management and timely repayments through a reinforced Sinking Fund. His address highlighted significant strides in debt servicing and the importance of redirecting funds to critical infrastructure projects.

On February 27, President John Dramani Mahama reiterated his government’s dedication to fulfilling Ghana’s debt obligations while strengthening the country’s financial reserves to facilitate economic recovery. During his inaugural State of the Nation Address, he criticized the previous administration for excessive debt accumulation and halted infrastructure projects.

President Mahama emphasized that the enhancement of disciplined fiscal management, alongside proactive debt repayment strategies and a reinforced Sinking Fund, would guide Ghana towards recovery. He cited recent progress in debt servicing, highlighting the 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.

The President highlighted that the additional buffers secured within the Sinking Fund would adequately cover upcoming Domestic Debt Exchange Programme maturities, ensuring timely repayments and reinforcing investor confidence. Mahama remarked, “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 honors its word.”

Furthermore, President Mahama addressed the economic repercussions stemming from previous mismanagement, noting 55 stalled infrastructure projects valued at $2.95 billion, alongside projected cost overruns of GHS 15 billion. He underscored that these obligations hindered public services and economic growth, thereby necessitating strict adherence to sustainable debt management principles.

He asserted that savings achieved through prudent debt management would be redirected toward resuming critical infrastructure initiatives. The President pledged to maintain fiscal discipline while prioritizing the revitalization of these stalled projects as a central agenda of his administration.

In summary, President Mahama’s address underscored his government’s commitment to improving Ghana’s economic landscape through effective debt management and infrastructure development. By reinforcing the Sinking Fund and maintaining fiscal discipline, the administration aims to ensure timely debt repayments and restore investor confidence, while addressing the challenges posed by previous fiscal mismanagement.

Original Source: gna.org.gh