Mid-Year Budget Review: Government pays GH¢12 billion to bondholders under DDEP

Minister of Finance, Dr. Mohammed Amin Adam, has announced that the government has paid GH¢12 billion to bondholders under the Domestic Debt Exchange Programme.

He stated that this disbursement has helped stabilise Ghana's economy and restore investor confidence.

The finance minister shared this information on Tuesday, July 23, 2024, while delivering the 2024 mid-year budget review in Parliament.

"The payment of GH¢12 billion to bondholders is a critical step in our efforts to restore confidence in the financial markets and stabilize the economy," he said.

"This payment demonstrates our commitment to fiscal discipline and prudent financial management."

Dr. Adam emphasized the government's dedication to fulfilling its financial obligations and ensuring economic stability.

He also explained how this payment aligns with the broader strategy of economic recovery and growth.

"The Domestic Debt Exchange Programme, introduced to manage and restructure the country's debt, has played a pivotal role in achieving these goals," Dr. Adam explained.

He highlighted that the government has also made significant progress in stabilising inflation and the exchange rate.

"Since 2022, inflation has decreased by 31 percentage points, and the exchange rate has shown signs of stabilization. These are crucial indicators of our economic resilience and recovery," he noted.

Furthermore, Dr. Adam announced that Ghana's international reserves have increased to 3.1 months of import cover, providing a stronger buffer against external shocks.

This improvement is credited to effective fiscal management and strategic negotiations with international partners, including the International Monetary Fund (IMF) and the Paris Club.

The mid-year budget review also emphasized the government's substantial investments in social programmes and infrastructure.

The finance minister disclosed that over GH¢5.4 billion has been disbursed for various social programs, including the Livelihood Empowerment Against Poverty (LEAP) initiative, the School Feeding Programme, and the National Health Insurance Scheme (NHIS).

"These programs are vital in providing support to the most vulnerable segments of society."

Additionally, he stated that nearly GH¢10 billion has been invested in the road sector since January 2024. Key projects include the expansion of the Komfo Anokye Teaching Hospital, the rehabilitation of the Ofankor-Nsawam Road, and ongoing investments in water and sanitation infrastructure.

Education remains a priority for the government, with significant funding allocated to the Free SHS programme. In the first half of 2024, GH¢1.5 billion was invested in the Free SHS programme, ensuring that the youth have access to quality education.

"Investing in education is investing in the future of our nation. We are committed to building a skilled and educated workforce," Dr. Adam stated.

The government has also launched a GH¢8.2 billion programme to boost small and medium-sized enterprises (SMEs), recognizing their critical role in job creation and economic development. This initiative aims to provide financial support and resources to local businesses, fostering innovation and entrepreneurship.

Dr. Adam also discussed the progress made in the digitalization agenda, with a GH¢135 million investment in the National Identification Programme.

This initiative is crucial for improving governance and service delivery, ensuring that every Ghanaian can access essential services efficiently.

MA/NOQ