Majority Leader Mahama Ayariga has stated that Ghana’s financial sector is recovering strongly after what he described as catastrophic mismanagement under the previous administration.

Wrapping up the debate on the 2026 Budget, he said the current government inherited a collapsed sector that cost taxpayers nearly GHC30 billion.

“The NPP destroyed the financial sector at great cost to taxpayers,” he declared.

Mr Ayariga referenced budget paragraphs 258 to 268, which indicate improving stability and growing confidence in the sector.

He noted that nine commercial banks, 347 microfinance institutions, 39 microcredit companies, and several savings and loans institutions had collapsed under the former administration.

“Over 10,000 financial sector jobs were lost—10,000 families were made miserable,” he stated.

He criticised the Domestic Debt Exchange Programme and the activities of the Ghana Amalgamated Trust (GAT), which he said further weakened indigenous banks.

He argued that the cost of the banking sector clean-up was unnecessarily inflated, suggesting that “a fraction of the GHC18.99 billion spent could have saved most of the banks.”

“If you divide GHC11.7 billion by the GHC400 million capital requirement, you will get 29 banks. Instead of saving nine banks, they collapsed them and spent the cost of establishing 29 new ones.”

The Majority Leader said the failures of the previous administration even undermined critical national financing efforts such as the cocoa loan syndication, which faced challenges in 2023 due to the weakened financial landscape.

He argued that the current government has since taken steps to restore confidence and stability, with improvements now reflected in key indicators.

“The sector is rebounding and confidence is being restored,” he asserted.

Mr Ayariga concluded that the 2026 Budget demonstrates a significant turnaround.

“We have replaced fiscal recklessness with honest and responsible management,” he said.

“The progress we are seeing today is a result of discipline, integrity and competent leadership.”