25/07/2025
Development Economist, Dr. Frank Bannor says former Finance Minister, Ken Ofori-Atta has been falsely accused of is borrowing through the bond market: “Between 2015 and 2016, Ghana recorded its highest coupon rates of 10.75% and 9.25% respectively. What is more dangerous was the fact that the NDC was not only borrowing at a very high coupon rate but at a very short tenor! This is critical to debt sustainability, including the use of the fund, and every true economist understands that.
The highest coupon rate ever recorded under Ken Ofori-Atta was 8.875% in April 2021. Not only was Ken borrowing at a low coupon rate, but the tenor of the bonds was mainly long-term, meaning the country would have the much-needed fiscal space to pay back!
You mean the most incompetent finance Minister in the economic history of Ghana, who’s only understanding of economic management was reckless borrowing? It is his mismanagement that led the country into the DDEP in the first place. The macro data have exceeded most IMF programme targets. And all it took was fiscal prudence and efficient spending. Ato toaso!!!
Riding on the emotions of Ghanaians to perpetrate half-truths could be detrimental to our democratic gains as a nation! Ghana’s public debt, recorded at $8.07 billion in 2008, skyrocketed to $29.2 billion by 2016, indicating more than a threefold increase. This surge propelled the debt-to-GDP ratio to 73.1% by the end of 2016 (non-rebased economy).
This reflects a growth rate of approximately 261.83% in the total public debt stock under the NDC from 2009 to 2016.This rate of change indicates that, on average, the NDC government added 32.75% to Ghana’s debt stock each year between 2009 and 2016. This trajectory was even worse between 2012 to 2016. The public debt, which stood at $15.3 billion in 2011, increased to $29.2 billion by the end of 2016, indicating a growth rate of 90.85% from 2012 to 2016.
Another area Ken Ofori-Atta has been falsely accused of is borrowing via the bond market. Bonds are the major form of debt utilised by both advanced and emerging market economies worldwide. Bonds can be issued to either domestic or foreign creditors and may be denominated in domestic or foreign currencies. Eurobonds are commonly denominated in US Dollars (USD) and are typically characterised by long-term maturity periods.
For brevity, if ever there was reckless borrowing, that was seen in the Eurobond market by the NDC. Between 2015 and 2016, Ghana recorded its highest coupon rates of 10.75% and 9.25% respectively. What is more dangerous was the fact that the NDC was not only borrowing at a very high coupon rate but at a very short tenor! This is critical to debt sustainability, including the use of the fund, and every true economist understands that.
The highest coupon rate ever recorded under Ken Ofori-Atta was 8.875% in April 2021. Not only was Ken borrowing at a low coupon rate, but the tenor of the bonds was mainly long-term, meaning the country would have the much-needed fiscal space to pay back!
Again, contrary to public misconception, for example, part of the Eurobond issued in 2018 was used to switch the 2016 Eurobond issued by the NDC, which matured in 2022, with a higher coupon rate of 9.25%, with the remaining amount of $420 million lodged in the Sinking Fund for further liability management.”
