By Eugene Davis
The Ministry of Finance has announced the creation of a Sinking Fund to support the repayment of government bonds maturing in 2026, 2027, and 2028, describing it as a financial safety net to reinforce debt sustainability.
According to a press statement issued by the Ministry, the measure will serve as a financial cushion to assure investors and the public of government’s commitment to meeting its debt obligations.
The announcement follows the government’s disclosure of a GH¢9.7 billion coupon payment under the Domestic Debt Exchange Programme (DDEP). The Ministry confirmed that GH¢9,698,815,220.17 was disbursed on Tuesday, bringing the total payout under the programme in 2025 alone to GH¢19.4 billion.
Officials stressed that the latest payment was more than a routine exercise, calling it a signal of government’s determination to restore investor confidence and credibility in Ghana’s debt management efforts.
“This payment shows our unwavering commitment to meeting our obligations on time,” the Ministry assured, emphasizing that all future debts — including those under the DDEP — will be honoured in full.
The DDEP, launched in 2022 as part of Ghana’s broader economic recovery programme, has often sparked heated debate. However, analysts argue that the latest payment demonstrates government’s seriousness in turning the corner on debt management.
Ghana’s recovery has been supported by the $3 billion IMF bailout programme approved in May 2023. According to a parliamentary report, the debt treatment terms provide $2.8 billion in debt service relief during the 2023–2026 programme period.
Under the restructuring arrangement:
Debt service payments due between December 20, 2022, and December 31, 2026, have been rescheduled and will now be repaid between 2039 and 2043, a delay of more than 15 years.
Interest on rescheduled amounts has been fixed between 1% and 3%, depending on the original contractual rate, saving the Treasury significant costs compared to market levels.
The Official Creditor Committee overseeing the restructuring noted that the arrangement was essential to restoring macroeconomic stability and ensuring long-term debt sustainability. Parliament has since unanimously endorsed the agreement.
Meanwhile, government is continuing negotiations with commercial creditors to conclude the full debt restructuring process.
