The Minister for Finance, Cassiel Ato Forson, has announced that government will introduce a new Loans Act to strictly regulate how borrowed funds are used.

On his facebook page, he explained that the new law will ensure that every loan secured by the country is tied to high impact and value for money investments that benefit Ghanaians.

The minister made this known after signing Ghana’s 11th bilateral debt restructuring agreement with EXIM Bank of India.

According to him, Ghana is making steady progress towards reducing its debt burden, adding that there are clear signs the country is moving away from a high risk of debt distress. He noted that the worst phase of the crisis appears to be over.

He assured that government remains committed to honouring all restructured debt obligations on time while keeping debt sustainability at the centre of its financial decisions.

He stressed that Ghana will not return to a path of unsustainable borrowing.

He added that the new direction will ensure that any money borrowed delivers real and measurable benefits to the people, stressing that every loan must be worthwhile and support national development.