Ghana’s latest coupon settlement under the Domestic Debt Exchange Programme (DDEP) is boosting investor sentiment as the government eyes a return to the bond market.
The Ministry of Finance recently cleared GH¢9.7 billion in coupon arrears, bringing total debt service so far this year to GH¢19.4 billion.
Economist Professor Godfred Bokpin says timely settlements are crucial to rebuilding trust after the debt restructuring.
Speaking at Prudential Bank’s Special Customer Seminar on the cedi’s appreciation, he noted that staying current on obligations is essential for restoring credibility with both domestic and international investors.
“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 stressed that consistent fiscal discipline and market transparency will determine the government’s ability to successfully re-enter the debt market.
“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 own fiscal operations, debt sustainability because without we entering the capital market even the domestic and international, it is going to be difficult for us in terms of refinancing the bullet payments that lies ahead in 2027 and 2028 in addition to financing government projects. It is going to be difficult,” he said.
The Domestic Debt Exchange Programme (DDEP) was part of Ghana’s broader debt restructuring plan introduced in late 2022 as a condition for securing an IMF bailout.
The programme was designed to make the country’s debt more sustainable by reducing the government’s near-term debt servicing obligations.
According to the Finance Ministry, the latest payment reflects the Government’s unwavering commitment to honouring the terms outlined in the Memorandum of Understanding signed with investors under the exchange programme.
Officials say the move is also expected to strengthen investor confidence and bolster Ghana’s fiscal credibility.
As part of measures to safeguard future debt repayments, the Government has created two dedicated sinking fund accounts in line with the 2025 Mid-Year Fiscal Policy Review and the provisions of the Public Financial Management Act, 2016 (Act 921), as amended.
These include a Cedi Sinking Fund Account and a US Dollar Sinking Fund Account, which will serve as liquidity buffers to ensure the timely redemption of bonds maturing in 2026, 2027, and 2028.
The Ministry further assured both investors and the public that all subsequent debt obligations, including those under the DDEP, will be honoured fully and on schedule.
