Ghana is edging closer to a critical milestone in its debt restructuring process, with the Finance Minister, Dr. Cassiel Ato Baah Forson, announcing the imminent signing of bilateral agreements with two key creditor nations. The move, experts say, could have far-reaching implications for economic recovery, investor confidence, and public investment over the next three years.
Speaking during the presentation of the 2025 Mid-Year Budget Review to Parliament, Dr. Forson disclosed that four bilateral agreements are expected to be signed by the end of July. These agreements form part of Ghana’s commitments under the International Monetary Fund’s (IMF) Extended Credit Facility, which is currently under its fourth review ahead of a critical fifth assessment in September 2025.
Expert View: A Critical Inflection Point
Dr. Daniel Amateye Anim, Chief Economist at PIED Africa, tells The High Street Journal that, while the bilateral deals are a necessary breakthrough, the economic effects depend heavily on how the government follows through.
“This is not just about paperwork or diplomatic signalling. These agreements are a gateway to unlocking suspended funding for key infrastructure and social projects. They give us breathing room, but also demand discipline,” he said.
The agreements are expected to enable the resumption of disbursements to support Ghana’s list of 24 priority infrastructure projects submitted to the Official Creditor Committee (OCC) and the IMF.
According to Dr. Forson, the goal is to complete and commission these projects by the end of 2028, a timeline experts caution must not be over-ambitious.
“These deals could revive contractor payments, stimulate demand in local industries, and create jobs in the short term. But they also signal to the markets that Ghana is serious about restoring debt sustainability,” added Dr. Anim
Debt Service: A Delicate Balancing Act
Ghana has been under pressure to honour its restructured domestic debt obligations while negotiating new terms with external creditors.
In the first half of 2025, the government paid a total of GHS9.8 billion in coupons to Domestic Debt Exchange Programme (DDEP) bondholders, capitalising GHS3.6 billion, and paying GHS1.1 billion to non-tendered bondholders.
For the second half of 2025, an additional GHS10.2 billion is due in DDEP coupons, along with GHS724.1 million in debt service for legacy bondholders who opted out of the exchange.
“To reassure both domestic and external creditors, the government is walking a tightrope, they’re pledging to meet all debt service obligations in full, while trying to revive investment and growth. This is commendable but incredibly difficult to sustain unless revenues improve dramatically,” Dr Anim said.
Building Buffers: A Smart Move or a Stopgap?
Starting August 2025, government will begin building cash buffers to handle major debt repayments looming in 2026, 2027 and 2028. This includes; a Cedi Sinking Fund Account targeting domestic debt redemption of GHS115.75 billion, a US Dollar Sinking Fund Account for Eurobond redemptions totalling US$3.73 billion.
Economists see this as a proactive step, though some caution it should not substitute for broader structural reforms.
“Creating these buffers signals fiscal maturity, but they must be backed by strong revenue mobilisation, not just optimism, otherwise, we’re kicking the can down the road while hoping oil prices rise or exports rebound, he said.
Restructuring Paves the Way But Will Growth Follow?
He believe the success of these agreements will ultimately be judged by their impact on real economic growth.
“If disbursements resume and public projects pick up, we should see activity in sectors like construction, manufacturing, and financial services rebound, but growth will still be modest if government fails to fix deeper issues like revenue leakages, underperforming state enterprises, and regulatory bottlenecks,” Dr. Anim said.
Meanwhile, the Finance Minister’s emphasis on fiscal consolidation rather than ramping up public spending suggests the government will take a cautious path, at least through 2025.
The long-term payoff, the economist say, is in improved creditworthiness, a potential return to the international capital markets, and renewed investor confidence.
