The Government of Ghana has successfully completed another significant milestone in its debt restructuring efforts, disbursing GH¢9.7 billion in coupon payments to bondholders under the Domestic Debt Exchange Programme on Monday, August 19, 2025.
This payment represents the largest single coupon disbursement in the programme’s history and demonstrates the administration’s commitment to honoring its restructured debt obligations.
The precise amount paid stands at GH¢9,698,815,220.17, bringing the total DDEP disbursements for 2025 alone to an impressive GH¢19.4 billion.
This substantial outflow reflects the government’s adherence to the revised payment schedule established under the debt exchange programme, which was launched in late 2022 as part of Ghana’s broader economic recovery strategy.
The payment schedule under the DDEP has gained momentum throughout 2025. Earlier in February, the government made a significant coupon payment of GH¢6.081 billion to all bondholders, marking a strong start to the year’s debt service obligations.
The consistent payment pattern has been crucial in rebuilding investor confidence following the initial uncertainty surrounding the debt restructuring programme.
Finance Ministry officials emphasize that today’s disbursement reinforces the government’s unwavering commitment to the terms outlined in the Memorandum of Understanding signed under the exchange programme.
This reliability is expected to strengthen investor confidence and support fiscal credibility, critical factors in Ghana’s ongoing efforts to stabilize its economy and return to international capital markets.
A key development accompanying this payment is the establishment of dedicated liquidity management mechanisms. In alignment with the 2025 Mid-Year Fiscal Policy Review, the government has created two specialized sinking fund accounts—a Cedi Sinking Fund Account and a US Dollar Sinking Fund Account.
These accounts, mandated by the Public Financial Management Act, 2016 (Act 921), as amended, will serve as crucial liquidity buffers to ensure timely redemption of future debt obligations.
The sinking funds are strategically positioned to manage upcoming bond maturities, particularly those scheduled for 2026, 2027, and 2028.
This proactive approach addresses one of the key concerns that led to the original debt crisis—the concentration of debt maturities within short timeframes that strained government liquidity.
The DDEP programme, which achieved over 80 percent participation of eligible bonds, has become a cornerstone of Ghana’s debt sustainability strategy.
The programme involved exchanging existing government securities for new bonds with revised terms, including adjusted interest rates and extended maturity periods, providing the government with much-needed fiscal space.
Market analysts view the consistent payment record as a positive signal for Ghana’s financial sector recovery.
The banking sector, which held substantial amounts of government securities before the exchange, has benefited from the predictable cash flows, supporting their liquidity positions and lending capacity.
The government’s assurance that all subsequent debt obligations, including future DDEP obligations, will be honored fully and on time provides additional confidence to the investment community.
This commitment is particularly significant as Ghana works to rebuild its reputation in international financial markets and prepare for eventual return to Eurobond markets.
As Ghana continues its economic recovery journey, the successful execution of the DDEP payment schedule represents tangible progress toward fiscal sustainability and renewed investor confidence in the country’s debt management capabilities.
Story Written By Prince Asante Kwarteng | Kobby Kyei News
