BY Issah Olegor
The National Democratic Congress government led by President John Mahama in his second term first year in office has outlined plans to borrow GH¢75.7 billion from the domestic market between October and December 2025, to meet its public sector financing needs and refinance maturing debts.
According to the Bank of Ghana’s latest issuance calendar, approximately GH¢67.5 billion of the amount will go toward rollover maturities, while the remaining GH¢8.2 billion represents fresh issuance to support government expenditure and fiscal operations for the fourth quarter.
Purpose of Borrowing
The borrowing is part of the government’s efforts to manage its debt obligations and finance its operations.
The NDC government aims to deepen the domestic capital market, lengthen debt maturity profiles, and enhance transparency in public borrowing through this borrowing plan.
This move aligns with the government’s Medium-Term Debt Management Strategy, which seeks to promote fiscal sustainability and stability in the country’s economy.
Implementation
The borrowing will be executed through the regular issuance of 91-day, 182-day, and 364-day Treasury bills, alongside possible reopenings of existing bonds under the Domestic Debt Exchange Programme (DDEP), depending on market conditions.
The Bank of Ghana will manage the borrowing process, ensuring that the government’s financing needs are met while maintaining stability in the financial markets.
Impact on Economy
The government’s borrowing plan has implications for the country’s economy, particularly in terms of interest rates and liquidity pressures.
With the domestic debt market becoming increasingly important for financing government operations, the government’s borrowing activities will likely influence interest rates and liquidity in the financial markets. Economists have expressed concerns about the sustainability of high domestic borrowing levels, citing potential crowding out effects on private sector credit and upward pressure on interest rates.
The Government decision to borrow GH¢75.7 billion from the domestic market in the fourth quarter of 2025 reflects its efforts to manage its debt obligations and finance its operations.
While the borrowing plan has implications for the country’s economy, it is part of the government’s broader strategy to promote fiscal sustainability and stability.
