Gov’t Has Built Financial Buffers to Meet All DDEP Obligations – Finance Minister Assures Banks
Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has moved to reassure banks that the government has built sufficient financial buffers to meet all obligations under the Domestic Debt Exchange Programme (DDEP) this year.
Addressing over 22 managing directors of banks at a high-level meeting, Dr. Forson underscored the administration’s commitment to fiscal responsibility and restoring confidence in the financial sector.
“We do not intend to default,” he said. “All outstanding holdouts have been settled, and we have established the necessary buffers to ensure that every DDEP obligation for this year will be honoured.”
The Minister attributed the creation of these buffers to fiscal consolidation measures, including expenditure rationalisation, strategic investment cuts, and prudent resource allocation. As part of these efforts, the government has reset goods and services expenditure to 2023 levels and is targeting a primary surplus of 1.5% to support macroeconomic stability.
Dr. Forson also revealed plans to introduce a fiscal responsibility law in Parliament that would impose a debt ceiling on government borrowing, aiming to curb excessive debt accumulation and reinforce financial discipline.
Beyond fulfilling DDEP obligations, the government is seeking to reduce reliance on the Treasury bill market. By improving coordination between fiscal and monetary policy, authorities aim to stabilise interest rates and ease liquidity pressures on the banking sector.
Dr. Forson sought to reassure financial executives that the government had learned from past economic challenges. “We are not going to be reckless,” he said. “We have built the necessary buffers to meet our obligations and will work closely with the banking sector to ensure stability and growth.”
