Ghana’s Ministry of Finance has announced the payment of GH¢10 billion in interest to bondholders under the Domestic Debt Exchange Programme (DDEP), marking the sixth coupon payment since the debt restructuring was implemented. This payment is the second consecutive full cash payment without any Payment-In-Kind component, signaling improved fiscal strength and liquidity conditions.
The payment covers cedi-denominated coupon obligations under the DDEP, aligning with the restructuring memorandum agreed with bondholders and the government’s broader fiscal consolidation and debt management strategy. The Ministry of Finance stated that this development reflects strengthened fiscal capacity and solvency.
Ghana’s Domestic Debt Exchange Programme (DDEP) is a key part of the country’s efforts to restructure its debt and restore fiscal stability. Launched in December 2022, the programme aims to reduce the country’s debt burden and improve its credit outlook.
Key Highlights of the DDEP:
- Debt Restructuring: The programme involves exchanging old domestic bonds for new ones with revised interest rates, maturities, or repayment terms.
- Interest Payments: Ghana has made significant interest payments under the DDEP, including a recent payment of GH¢10 billion ($910 million).
- Fiscal Consolidation: The programme is part of Ghana’s broader fiscal consolidation efforts, aimed at reducing debt-to-GDP ratios and ensuring long-term debt sustainability.
- Investor Confidence: The timely payment of interest obligations is expected to boost investor confidence and support Ghana’s credit outlook.
Ghana’s government has reaffirmed its commitment to meeting future DDEP obligations, citing stronger fiscal buffers, improving macroeconomic fundamentals, and declining inflation.
