Ghana pays $910 million in interest on domestic debt as part of its economic recovery initiatives
Ghana has paid $910 million in interest as part of its Domestic Debt Exchange Programme, indicating enhanced fiscal capacity and increased market confidence.
The government of Ghana has disbursed 10 billion cedis ($910 million) in interest as part of its Domestic Debt Exchange Programme (DDEP), as announced by the Finance Ministry on Wednesday. This payment represents the sixth coupon settlement since the country initiated its debt restructuring process.
The ministry stated that the payment aims “to reassure both domestic and international investors, strengthen market confidence and support the country’s credit outlook, while also promoting stability across the financial sector.”
The most recent settlement marks the second “full cash” coupon payment without any payment-in-kind component, as stated by the ministry, which highlighted that this indicates “improved fiscal capacity and a stronger solvency position.”
Ghana, recognized as the world’s second-largest cocoa producer, initiated the DDEP in late 2022 as part of a comprehensive strategy aimed at restoring debt sustainability following a significant fiscal squeeze. This situation prompted a debt overhaul that impacted banks, asset managers, and pension funds with substantial investments in government securities, according to the statement.
The payment addresses coupon obligations on cedi-denominated instruments exchanged under the DDEP, in accordance with the programme’s restructuring memorandum and the government’s overarching debt-management and fiscal-consolidation strategy.
The ministry indicated that Ghana aims to fulfill future DDEP obligations, enhance liquidity buffers, and improve macroeconomic conditions to alleviate inflation and interest rates.
The government has announced plans to re-enter the domestic debt market this year and has selected bond market specialists to oversee the process, it stated.
