Subsequent to the implementation of the Public Financial Management Act, 2016 (Act 921) a Medium-Term Debt Management Strategy (MTDS) slated for 2018-2021 has been published upon the approval of the Cabinet of the Government of the Republic of Ghana. This has been officially referenced as the 2018-2021 Medium Term Debt Management Strategy (2018 MTDS).
This 2018 MTDS is the second to be published in the fulfilment of the requirements of Section 59 of Act 921. It was published on the 21st day of March 2018.
The 2018 MTDS is unique for the fact that, it is being developed at a time when the macroeconomic fundamentals in Ghana are strengthening. The economic fortunes in the past gave mixed results which necessitated Ghana’s commitment to fiscal discipline, structural reforms and macroeconomic stabilization for growth and job creation. As a result, the Ghanaian economy currently shows signs of robust recovery.
It is established in the2018 MTDS that the implementation of sound fiscal policies led to a reduction in Ghana’s fiscal deficit in 2017. Further on, it is stated that the Ghanaian governments re-profiling programme led to an extension of the redemption profile of domestic debt which has led to the successful reduction of the stock of short term debt, thereby reducing rollover and refinancing risks embedded in the portfolio.
To read the 2018 MTDS, please click here
By Kwabena Kwarteng