Dr. Mohammed Amin Adam flanked by members of the Minority
The Minority in Parliament has strongly refuted claims that the previous New Patriotic Party (NPP) government left no financial buffers for the new administration.
According to them, as at the end of 2024, the NPP government left over GH¢5 billion in buffers from revenue collected by the Ghana Revenue Authority (GRA) in the Treasury Main 2 Account.
At a news conference addressed by former Finance Minister, Dr. Mohammed Amin Adam in Parliament yesterday, the Minority argued that these funds have since been utilised by the new government.
They insisted that, contrary to the President’s assertion, various designated accounts were set aside to support expenditure and maturing debt obligations.
The Minority criticised the President for focusing solely on the Sinking Fund as if it were the only available buffer.
Dr. Adam explained that over the past eight years, the previous government maintained several financial reserves, including the Sinking Fund (both Dollar and Cedi accounts), the Eurobond Proceeds Account, the IMF Proceeds Account, and the Treasury Main 2 Account.
“To suggest that there were no buffers is misleading,” the former minister stated, noting, “For example, the IMF’s third review disbursement of $360 million was received on December 2, 2024, and was kept as a buffer.”
“A portion of these funds was used to pay $346 million in Eurobond coupons on January 3, 2025, yet this payment did not come from the Sinking Fund,” Dr. Adam noted.
Similarly, the Minority indicated that in October 2024, the government paid $520 million to Eurobond holders for first coupon payments and other associated fees, yet again, these payments did not come from the Sinking Fund.
“How could we have made these payments if we didn’t have buffers?” they questioned, emphasising that the previous government left sufficient reserves to meet the country’s financial obligations.
With the ongoing debate over Ghana’s economic management, the Minority’s revelations challenge the President’s narrative and raise concerns about how the country’s financial resources are being accounted for. The coming months are expected to see increased scrutiny over the handling of public funds as both political sides seek to shape public perception ahead of the next election cycle.
Financial Sector
The Minority also berated President Mahama on his remarks on the country’s financial sector, accusing him of making sweeping statements without any factual basis.
In his address, President Mahama stated, “The financial sector continues to struggle despite the previous government reportedly spending GH¢29.9 billion on the financial sector clean-up exercise to date.”
However, the Minority insists that this claim misrepresents the reality of Ghana’s financial industry.
According to the Minority, while they sympathise with those affected by the financial sector cleanup, the exercise was a necessary intervention to prevent the banking industry from collapsing, protect depositors’ funds, and revive the economy.
The former Finance Minister argued that the financial sector has emerged stronger, with banks posting impressive financial ratios and returning to profitability, despite the effects of the Domestic Debt Exchange Programme (DDEP) on local banks.
“The evidence today shows that notwithstanding the DDEP effects on local banks, the financial sector has become stronger, with banks posting impressive financial ratios and returning to profitability. This is the true state of the financial sector in Ghana,” Dr. Adam stated.
Citing data from the Bank of Ghana’s January 2025 publication, Summary of Economic and Financial Data, he underscored significant growth in the sector, noting that Total Assets of the financial sector grew by 33.8% by the end of 2024.
According to him, Total Deposits saw an annual increase of 28.8%, while core liquid assets to short-term liabilities rose by 46.3%.
The Minority also pointed to strong performance in the capital markets, noting that the Ghana Stock Exchange (GSE) All-Share Index grew by 56.2% in 2024. Furthermore, profitability indicators in the banking sector showed robust growth.
The former minister said Return on Assets (before tax) recorded 5.4% growth in December 2023 and 5% in December 2024, whilst Return on Equity (after tax) grew at 34.2% in December 2023 and 30.8% in December 2024.
“It is no secret that the strength of an economy is also determined by the strength of its financial sector. Given the record of performance of our financial sector under the NPP administration, is it correct for such an economy to be described as badly managed?” the Minority questioned.
They further argued that all key components of the economy are in good shape, including the real sector, which has demonstrated strong GDP growth, and the external sector, which has posted impressive trade and current account surpluses.
“Therefore, we need to ask President Mahama—how did he come by the conclusion that the economy was mismanaged?” the former minister stated.
By Ernest Kofi Adu, Parliament House