Ghana’s latest debt service under the Domestic Debt Exchange Programme (DDEP) is being hailed as a critical step in restoring investor confidence and setting the stage for the country’s re-entry into the bond market.
The Ministry of Finance confirmed that it has cleared GH¢9.7 billion in coupon arrears, bringing total debt service for 2025 to GH¢19.4 billion. The payment comes amid heightened scrutiny of Ghana’s post-restructuring commitments and its broader efforts to stabilise public finances under the IMF-supported programme.
Economist Professor Godfred Bokpin, speaking at Prudential Bank’s Special Customer Seminar on the appreciation of the cedi, described the move as an important credibility boost.
“If you look at what we have gone through with the debt restructuring and the fact that it has wounded confidence in the market, I think the predictability and the sustainability of keeping to the debt repayment roadmap is good for building confidence. Government itself is thinking about opening the bond market,” he noted.
Prof. Bokpin warned, however, that consistency will be key. “You need this predictability to be able to consolidate confidence so that we can open the bonds market and hopefully open the international capital market going forward. That will offer some kind of transition and flexibility for government’s own fiscal operations and debt sustainability,” he explained.
Without renewed access to capital markets, he cautioned, Ghana would face challenges in refinancing looming bullet payments in 2027 and 2028 alongside financing key government projects.
The DDEP, launched in late 2022, was a cornerstone of Ghana’s debt restructuring plan and a precondition for unlocking a $3 billion IMF bailout. The programme exchanged old domestic bonds for new ones with longer maturities and lower coupons, reducing the government’s near-term obligations but shaking investor confidence in the process.
By honouring payments on schedule, the Finance Ministry insists it is committed to repairing that trust. In its latest statement, the Ministry said the GH¢9.7 billion payout “demonstrates government’s unwavering commitment to honouring the terms outlined in the Memorandum of Understanding signed with investors under the exchange programme.”
To further safeguard future repayments, government has established two dedicated sinking fund accounts in line with the 2025 Mid-Year Fiscal Policy Review and the Public Financial Management Act, 2016 (Act 921). These include a Cedi Sinking Fund Account and a US Dollar Sinking Fund Account, both designed as liquidity buffers to ensure timely redemption of bonds maturing in 2026, 2027, and 2028.
Analysts say the move not only strengthens Ghana’s fiscal credibility but also signals a deliberate shift towards market transparency and discipline. For investors still nursing wounds from the restructuring, the test will be whether the government can sustain this momentum.
“The coupon payment is a positive signal, but credibility is earned over time, and it is consistency that will determine Ghana’s success in reopening the bond market and regaining international capital flows.” Bokpin noted.
