Proposed Loans Act to regulate government borrowing

Ghana’s government plans to introduce a new law called the Loans Act. This act will control how the government borrows money. The goal is to make sure all borrowed funds are properly approved by Parliament.

This is important because Ghana has high public debt. A new law could bring more order to how the government manages its money. It could stop the government from taking on too much debt without clear plans.

The act will make it mandatory for all loans to go through Parliament. This means more checks and balances on government spending. Parliament will have to agree to each loan before it is taken. This transparency is good for public finance.

For businesses and investors, this could mean more stable national finances. A controlled borrowing process reduces risks related to sudden debt problems. It signals a move towards stronger financial rules. This might also help Ghana manage its currency and inflation better over time.