Minister of Finance, Dr. Cassiel Ato Forson
Economist and lecturer at the University of Ghana, Professor Godfred Bokpin, has cautioned the government against hastily seeking financial aid from the international market amid the country’s deteriorating economic situation.
He advised the government to focus on strengthening Ghana’s domestic bond market to restore investor confidence and stimulate economic growth.
Speaking on The Big Issue on Channel One TV, Prof. Bokpin emphasized that the Sinking Fund, which the government is using to access the bond market, will yield positive results.
“Before turning to the international capital market, we should first focus on trading within our own bond market. The government needs to operate in the short- to medium-term segment of the yield curve, and I believe the operationalization of the Sinking Fund will help reopen the bond market,” he stated.
The renowned economist further pointed out that the government struggled to meet its auction target before the 2025 general elections, with the November 2024 treasury bill auction failing to reach expectations.
“Immediately after the elections, there was a noticeable boost in confidence, with some deposits of trust placed in the government’s account. This was reflected in the treasury bill market, where oversubscription rates sometimes exceeded 40%,” he added.
Amid Ghana’s economic challenges, Minister of Finance Dr. Cassiel Ato Forson is expected to implement measures to facilitate economic recovery.
SB/MA