Finance and Tax Analyst, Nelson Cudjoe Kuagbedzi, says the government’s latest GH¢10 billion interest payment under the Domestic Debt Exchange Programme (DDEP) is a strong signal of fiscal commitment that could significantly improve Ghana’s credit rating outlook.
The government on Wednesday, February 18, 2026, announced the settlement of GH¢10 billion in interest obligations under the DDEP. In a statement, the Ministry of Finance described the payment as the sixth coupon settlement under the programme and, notably, the second full cash payment made without any Payment-In-Kind (PIK) component.
The development marks another step in government efforts to rebuild market confidence following the debt restructuring exercise that reshaped Ghana’s domestic bond market.
Reacting to the development, Nelson Kuagbedzi described the payment as a decisive signal to investors and rating agencies that the government is committed to honouring its obligations going forward.
“Well, I think this is a clear demonstration and commitment from the government that future obligations will be met. And once these DDEP coupons have been paid, it will go a long way to reinforce the creditworthiness of the government. It will also help enhance Ghana’s credit rating outlook,” he stated.
According to him, consistent coupon payments under the programme are critical in reshaping perceptions about Ghana’s sovereign risk profile.
“And so, we expect the next credit rating by the various rating agencies to be enhanced. It will also bring back some level of confidence and help deepen the liquidity in the Ghanaian market. I mean, the market is currently illiquid.”
“And so, once people have confidence that their investment will be paid back, we expect a lot more activity within the market,” he added.
While commending the government for meeting its obligations, the analyst cautioned that sustaining the gains will require discipline in borrowing and spending.
“Now, going forward, I think that we should be prudent with our borrowing. We should borrow for projects that can generate positive NPVs. We shouldn’t borrow for consumption as we have witnessed in the past,” he said.
He further stressed the importance of strengthening domestic revenue mobilisation to reduce overreliance on debt.
“We should also continue with the fiscal discipline and also try as much as possible to raise enough domestic tax revenue to support the annual budget.”
