The government of Ghana has established two dedicated accounts, the Cedi Sinking Fund Account and US Dollar Sinking Fund Account, to ensure the country can meet its debt obligations without straining the budget.
The move, first outlined in the 2025 Mid-Year Budget Review, is fully aligned with the Public Financial Management Act, 2016 (Act 921). By setting aside money now, Ghana aims to cover bonds maturing in 2026, 2027, and 2028, reducing the risk of missed payments and enhancing financial predictability.
The announcement by Finance Minister Dr. Ato Forson coincided with a GH¢9.7 billion coupon payment under the Domestic Debt Exchange Programme (DDEP) on August 19, bringing total payments this year to GH¢19.4 billion. In his statement, he explained that these steps are part of a broader strategy to rebuild trust with investors:
“This payment demonstrates Government’s unwavering commitment to honouring the terms outlined in the exchange programme and is expected to strengthen investor confidence and support fiscal credibility.”
For investors, this combination of timely payments and dedicated sinking funds sends a strong signal Ghana is serious about honoring its debts. This move analysts say could reduce uncertainty, lower perceived risk, and can make Ghanaian bonds more attractive in the global market. It also signals that future debt maturities are planned for and secured, giving both local and foreign investors confidence that the government is proactively managing its obligations.
Beyond financial markets, the measures could have indirect benefits for the economy. By smoothing out debt repayments, the government avoids sudden budget shocks that could fuel inflation, destabilize the cedi, or disrupt critical public projects.
In effect, the sinking funds not only protect investors but also help maintain stability for households and businesses.
