Ghana’s Treasury Bill (T-Bill) market has recorded GH¢89.7 billion in investor bids since President John Mahama’s administration resumed office on January 10, 2025, according to Finance Minister Cassiel Ato Forson.
The figure, disclosed during a fiscal update this week, highlights the government’s balancing act in managing inherited debt while navigating renewed investor interest.
Of the total bids, GH¢59.5 billion were accepted as rollovers for maturing debts left by the prior New Patriotic Party (NPP) government under former President Nana Akufo-Addo and Vice President Mahamudu Bawumia. The Mahama administration rejected GH¢30.2 billion in bids, a move Forson framed as part of a broader strategy to curb unnecessary borrowing. Net borrowing under the current government stands at GH¢7.1 billion, which Forson described as a “limited buffer” to address legacy liabilities.
“Actual debt accumulation under this administration is virtually nonexistent,” Forson asserted, crediting strict debt management protocols for stabilizing fiscal pressures. The statement comes amid a notable shift in Ghana’s short-term borrowing costs: the 91-day T-Bill rate has plummeted from 28.34% to 20.79% in just 50 days, a trend Forson called a “resounding endorsement” of the government’s economic stewardship.
Analysts suggest the drop in T-Bill rates signals improved market confidence, potentially easing debt servicing burdens. However, critics caution that reliance on refinancing inherited debts—rather than outright repayment—could defer fiscal risks. The NPP opposition has yet to respond to Forson’s claims, though the debate over debt accountability is likely to intensify as Ghana’s economic recovery remains fragile.
The Mahama administration’s approach underscores a deliberate pivot toward conservative borrowing, a contrast to the previous government’s aggressive deficit financing. While lower T-Bill rates may reduce short-term borrowing costs, long-term sustainability hinges on structural reforms and revenue mobilization—a challenge yet to be fully addressed.
As Ghana navigates post-pandemic recovery and global economic headwinds, the Treasury Bill market’s performance will serve as a critical barometer of investor sentiment and fiscal credibility. For now, the government appears intent on leveraging cautious debt strategies to rebuild stability, though the true test lies in translating investor confidence into tangible economic growth.
