Ghana’s government has paid GHS 10.82 billion to Domestic Debt Exchange Programme (DDEP) bondholders. This payment was made on August 19, 2026, fully in cash and on schedule.
This latest settlement brings the total DDEP payments since 2025 to GHS 41.36 billion. It represents the third coupon payment made entirely in cash under the DDEP. The programme was a necessary step to address a severe debt crisis that affected Ghana's financial system deeply.
This payment is part of a much longer history of debt challenges for Ghana, stretching back almost seven decades. Since gaining independence, Ghana has repeatedly faced debt distress. Governments have used various tools, including creditor rescheduling, austerity measures, and International Monetary Fund (IMF) programmes. They have also relied on debt forgiveness and fiscal consolidation to manage these recurring pressures. The 2022 crisis was unique because it forced the government to restructure obligations held by its own banks, pension funds, insurers, and citizens.
Ghana’s debt problems began surprisingly soon after independence. Rapid industrialisation and infrastructure projects were often financed with foreign suppliers’ credits. By the end of 1965, Ghana’s foreign debt had soared to almost US$700 million from negligible levels in 1959. The country’s financial reserves were nearly exhausted. This led to debt restructurings in 1966, 1968, and 1970. The lesson from this period was clear: borrowing terms must match the time it takes for investments to generate returns.
By 1982, Ghana had accumulated about US$580 million in external payment arrears. The Economic Recovery Programme launched in 1983 addressed this with strict fiscal discipline and exchange rate reforms. It also included trade liberalisation and support from international financial institutions. This led to a sharp fall in inflation and a recovery in economic growth. However, debt pressures re-emerged.
By the end of 2000, Ghana’s external debt reached US$5.9 billion. Its net present value was 557 percent of government revenue. Ghana then joined the Highly Indebted Poor Countries (HIPC) Initiative. By 2004, the country had secured about US$3.5 billion in nominal debt service relief. Unlike the DDEP, HIPC mainly focused on external official debt. The DDEP, however, directly impacted Ghana’s domestic financial system.
The 2022 crisis that led to the DDEP was a result of long-standing vulnerabilities combined with new shocks. Public debt increased from about 63 percent of GDP in 2019 to over 90 percent by the end of 2022. The COVID-19 pandemic caused larger fiscal deficits. Global monetary tightening increased borrowing costs. Russia’s invasion of Ukraine pushed up commodity prices. The cedi depreciated, inflation accelerated, and international capital markets became inaccessible. The government found it increasingly difficult to roll over domestic bonds. Debt servicing consumed more and more government revenue, and domestic borrowing costs rose sharply. The DDEP, launched on December 5, 2022, was therefore a necessity, not a choice.
This latest payment demonstrates the government's commitment to its restructured debt obligations. However, it also underscores the ongoing need for careful fiscal management. Investors and financial markets will closely watch Ghana’s ability to sustain these payments and manage its overall debt burden. The long-term stability of the cedi and the broader economy depends on continued fiscal discipline and prudent borrowing practices.