President Akufo-Addo Signs Bill to Prohibit Compound Interest Payments by State

In a significant move aimed at bolstering financial accountability and transparency within the public sector, President Nana Addo Dankwa Akufo-Addo has given his assent to a new Act of Parliament. This legislation effectively bans the payment of compound interest by the state in transactions conducted by public officers on behalf of the government.

The enactment of this law marks a pivotal moment in Ghana's governance framework, addressing long-standing concerns surrounding fiscal responsibility and prudent financial management. With compound interest payments often leading to inflated costs for the state, the decision to curtail such practices reflects the government's commitment to fostering efficiency and safeguarding public funds.

President Akufo-Addo emphasized the importance of this legislation in a statement following its signing, stating, "It is imperative that we instill greater accountability in the management of public finances. This Act serves as a crucial step towards ensuring that taxpayer money is utilized judiciously and in accordance with the principles of fiscal prudence."

The prohibition of compound interest payments aligns with the government's broader agenda to streamline processes, eliminate wastage, and promote a culture of responsible financial stewardship across all levels of governance. By enacting this law, Ghana reaffirms its commitment to upholding the highest standards of transparency and integrity in public administration.

The legislation is expected to have far-reaching implications, not only in terms of cost savings but also in enhancing investor confidence and bolstering the country's economic credibility on the global stage. With tighter controls in place, the government aims to foster an environment conducive to sustainable growth and development, where resources are allocated efficiently to maximize societal benefit.

As the nation looks ahead to a future marked by progress and prosperity, the enactment of this Act stands as a testament to Ghana's unwavering commitment to good governance and fiscal responsibility.