Finance Minister Dr Cassiel Ato Forson has assured banks that the government has built sufficient financial buffers to meet all Domestic Debt Exchange Programme (DDEP) obligations this year.
Speaking at a high-level meeting with over 22 Managing Directors of banks, he reaffirmed the government’s commitment to fiscal responsibility and restoring confidence in the financial sector.
“We do not intend to default,” Dr. Forson declared.
“All outstanding holdouts have been paid, and we have put in place the necessary buffers to ensure that every single DDEP obligation for this year will be met.”
The Minister explained that these buffers were created through fiscal discipline, strategic investment cuts, and prudent resource allocation.
As part of this approach, the government has reset goods and services expenditure to 2023 levels and is working to achieve a primary surplus of 1.5% to sustain economic stability.
He also announced plans to submit a fiscal responsibility rule to Parliament, which will set a debt ceiling that the Ministry of Finance cannot exceed.
This measure aims to prevent excessive borrowing and reinforce financial discipline.
Beyond ensuring timely DDEP payments, Dr Forson revealed that the government is taking deliberate steps to reduce reliance on the Treasury bill market.
By improving coordination between fiscal and monetary policies, the government aims to stabilize interest rates and ease liquidity pressures on the banking sector.
Dr Forson emphasised that these measures are part of a broader effort to ensure economic resilience and avoid the financial instability of 2022.
“We have learned from the past. We are not going to be reckless,” he assured the banking executives.
“We have built the necessary buffers to meet our obligations, and we will work with you to ensure a stable and prosperous economy.”
Source: Myjoyonline.com
