Ghana Saves GH¢4.9bn in Domestic Interest Payments as Borrowing Costs Fall Sharply
Government’s prudent debt management policies have resulted in a significant GH¢4.9 billion savings in domestic interest payments by the end of June 2025, Minister of Finance, Dr Cassiel Ato Forson has touted.
The relief comes amid a marked decline in Treasury bill rates, reflecting improved macroeconomic stability. The 91-day Treasury bill rate fell by 13 percentage points, from 27.7% in December 2024 to 14.7% in June 2025. Similar drops were recorded across other short-term instruments: the 182-day bill declined by 13.1 percentage points to 15.3%, while the 364-day bill plunged by 14.19 percentage points to 15.8% over the same period.
Presenting the mid-year budget review to Parliament, Dr Forson further stated that commercial borrowing costs had eased, with the average lending rate dropping from 30.3% in December 2024 to 27.0% in June 2025. The Ghana Reference Rate, which guides bank lending, decreased from 29.3% to 24.0%.
Analysts say these developments are not only easing the government’s debt service burden but are also creating space for increased spending on development projects.
For businesses and households, the decline in lending rates is expected to gradually translate into more affordable credit, potentially spurring investment and economic activity.
The Finance Ministry attributed the improved borrowing environment to strengthened fiscal discipline, prudent debt management, and restored confidence in the macroeconomic framework.
