The government has fulfilled its financial obligations under the Domestic Debt Exchange Programme (DDEP) by disbursing GH₵6.08 billion in cash payments to bondholders. This action, directed by President John Dramani Mahama, underscores the administration’s commitment to maintaining fiscal responsibility and restoring economic stability.
In addition to the cash settlements, GH₵3.46 billion has been allocated as Payment-in-Kind (PIK), credited to bondholders’ securities accounts in line with the DDEP Memorandum. To further strengthen debt management, GH₵9.7 billion has been deposited into the Debt Service Recovery Cedi Account, commonly known as the Sinking Fund. This reserve is designed to buffer upcoming debt obligations, particularly the fifth DDEP coupon payments due in July and August 2025.
This initiative aligns with the government’s broader strategy to re-establish the Sinking Fund as a mechanism for managing impending debt obligations. By utilizing provisions within the Petroleum Revenue Management Act, 2011 (Act 815), the administration aims to channel resources into the Sinking Fund, addressing Ghana’s debt challenges more effectively.
The government also plans to renegotiate existing debt arrangements to create a more sustainable debt profile, ensuring that future debt servicing aligns with the nation’s fiscal capacity. These efforts are part of a comprehensive approach to economic recovery and growth, focusing on prudent financial management and strategic resource allocation.
The Ministry of Finance has reiterated its commitment to engaging transparently with all stakeholders as it implements these measures, aiming to foster a stable economic environment conducive to national development.
