No borrowing for air tickets, cars, conferences under proposed Loans Act – Dr Ato Forson

Finance Minister Dr Cassiel Ato Forson says the government will soon introduce a Loans Act in Parliament to establish clear rules governing public borrowing and ensure that loans are contracted for productive purposes. He said the proposed legislation would define the purposes for which the government could borrow and prevent the use of commercial loans to finance consumption and other recurrent expenditure. Speaking on TV3’s New Day on Friday, November 13, 2026, Dr Forson said the government was committed to strengthening discipline in public debt management. He explained that under the proposed framework, commercial loans would be reserved for self-financing projects, while concessional loans would be used to finance social interventions. 10 key takeaways from Ghana's 2027 Budget The Minister stressed that borrowing should not be used to pay for items such as air tickets, vehicles and conferences, which do not generate returns to support debt repayment. “You borrow commercial for self-financing projects. You borrow concessional for social projects and you don’t borrow to buy air tickets. You don’t borrow to buy cars. You don’t borrow for conferences. That is not allowed because when you borrow, you will be paying for that debt,” he said. Dr Forson also ruled out a return to the international capital market, saying the government had no appetite for Eurobond borrowing and considered the domestic capital market strong enough to meet its financing needs. He criticised the previous administration’s reliance on international commercial borrowing between 2017 and 2021, questioning what investments Ghana could point to from the billions of dollars borrowed during that period. He said the country was now bearing the cost of those borrowing decisions and maintained that commercial borrowing in foreign currencies should be directed towards investments rather than consumption. Peasant farming alone cannot solve Ghana's food production challenges – Dr Ato Forson The proposed Loans Act is expected to provide a framework for public borrowing and strengthen accountability in the management of government debt. AS/MA New Cedi Notes to Circulate from December 1 – Bank of Ghana Bank of Ghana Unveils New Cedi Notes with Stronger Security Features Source: www.ghanaweb.com
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