Government's GH¢85 billion borrowing could make loans expensive – Expert

Tax analyst Francis Timore Boi has cautioned that the government's plan to borrow GH¢85 billion from the domestic market in 2027 could make it difficult for businesses to access affordable loans.

He said the government's decision to borrow such a large amount locally could increase competition for funds from banks and other financial institutions, leaving businesses struggling to secure financing.

Speaking on Channel One TV on Saturday, November 14, 2026, Timore Boi questioned how the government intends to raise the money without affecting private sector access to credit.

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“If you decide to go and borrow GH¢85 billion on the local market, people will interpret it to be you are competing with the private sector in terms of financing,” he said.

His comments follow the presentation of the 2027 Budget by Finance Minister Dr Cassiel Ato Forson on Thursday, November 12, 2026.

Timore Boi acknowledged that borrowing from the domestic market could help reduce pressure on the cedi, as the government would not need to rely heavily on foreign currency to finance its expenditure.

However, he warned that if banks and other investors refuse to lend to the government at existing interest rates, the government may be forced to increase Treasury bill rates to attract investors.

“If banks start, or the lenders start, rejecting your borrowing, the only thing you can do is to increase your Treasury bills and other things up, and then you start competing,” he stated.

He explained that higher Treasury bill rates could encourage banks to invest more in government securities rather than lend to businesses, making loans more expensive and difficult to obtain.

Timore Boi therefore called on the government to clearly explain how it intends to raise the GH¢85 billion while ensuring businesses have access to affordable credit.

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He stressed the need for the government to balance its borrowing needs with those of the private sector to support business growth and job creation.

DR/MA

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