Ghana faces GHS 111 billion in Domestic Debt Exchange Programme (DDEP) bond repayments due in 2027 and 2028. The government has announced it has measures in place to meet these significant financial obligations.
These repayments include GHS 58 billion maturing in 2027 and GHS 53 billion in 2028. The government is strengthening its Sinking Fund, a special account for debt repayment, to prepare for these maturities. This proactive approach aims to ensure Ghana can honor its commitments without undue economic strain.
This situation fits into Ghana's broader economic narrative of managing its public debt burden. The DDEP, introduced in 2023, was a critical part of Ghana's debt restructuring efforts. It aimed to reduce immediate financing pressures on the government. However, Finance Minister Dr. Cassiel Ato Forson clarified that the DDEP was designed to postpone the debt problem, not eliminate it entirely. This highlights the ongoing challenge of sustainable debt management for the nation.
Dr. Cassiel Ato Forson, the Minister of Finance, presented this information during the 2026 Mid-Year Fiscal Policy Review to Parliament on Thursday. He stated that the government has strengthened the Sinking Fund specifically for these repayments. The fund had accumulated GHS 15.6 billion as of July 22, 2026. It is projected to reach GHS 30 billion by the end of the year.
The Minister explained that under the 2026-2029 Medium-Term Debt Strategy, seven percent of non-oil tax revenues are paid into the Sinking Fund. Proceeds from domestic bond issuances also contribute to this fund. Dr. Forson expressed confidence that the projected balance would be sufficient to meet a major DDEP bond obligation due in February 2027. He emphasized that meeting such large obligations requires careful advance planning.
The Sinking Fund serves to reassure investors, credit rating agencies, and the public about Ghana's commitment to honouring its debt obligations. This transparency and proactive management are crucial for maintaining investor confidence. Ghana has consistently met its debt servicing commitments, including GHS 10.1 billion in DDEP coupon payments in February 2026. A further GHS 10.8 billion is scheduled for payment in August.
Ghana has also paid a total of $2.1 billion in principal and interest to Eurobond holders since January 2025. This demonstrates a consistent effort to manage external debt as well. Prudent fiscal management and timely debt servicing have contributed to improvements in Ghana's debt outlook. This has also positively impacted investor confidence in the Ghanaian economy.
The continued build-up of the Sinking Fund and sustained fiscal discipline are expected to enable the government to meet its debt obligations in 2027 and 2028. This strategy aims to prevent undue pressure on the national economy. The government's ability to successfully navigate these repayments will be a key indicator of its financial stability and commitment to fiscal responsibility in the coming years.