Reopening bond market is poorly timed – Minority warns Ato Forson

The Minority caucus in Parliament has strongly criticised the government’s decision to reopen the bond market, describing it as ill-advised and risky for Ghana’s economy.

Speaking at a press conference on Thursday, March 13, 2025, former Finance Minister Dr. Mohammed Amin Adam cautioned that the move by Finance Minister Dr. Cassiel Ato Forson to return to the domestic bond market is poorly timed and could have severe consequences for the country’s fiscal stability.

During the 2025 Budget Statement presentation on Tuesday, March 11, Dr. Forson announced:
“Mr. Speaker, the government will take steps to reopen the domestic bond market to extend the maturity profile. The reopening will be executed cautiously to establish large-sized benchmark bonds that will enhance market liquidity.”

Reacting to this statement, Dr. Amin Adam raised concerns about the timing of the decision, arguing that it coincides with the government’s announcement of an elevated fiscal deficit—a figure he claims is based on manipulated data.

“It’s surprising nevertheless, notwithstanding the improvement in the debt environment, the timing of the announcement of the minister to enter the bond market is not good advice,” he stated.

According to Dr. Amin Adam, the government’s approach exposes Ghana to higher borrowing risks, which are already having a negative impact on the economy.

“The timing for the announcement of the minister to open the bond market coincided with the announcement of the elevated fiscal deficit based on their manipulated data, a condition that exposes the country to higher risk of borrowing in the market.

“The effect of this unfortunate data manipulation is already hitting our economy since they read the budget. The government must know that just by presenting such erroneous data to score political points, Ghana’s sovereign bonds spreads are already widening, nearing 700 basis points,” he added.

The Minority’s concerns come at a time when Ghana is striving to stabilize its economy amid ongoing fiscal challenges. The debate over the reopening of the bond market is expected to intensify, with financial analysts closely monitoring the potential impact on Ghana’s borrowing costs and investor confidence.