Ghana’s government has paid 10 billion cedis ($910 million) in interest under its Domestic Debt Exchange Programme (DDEP), the Finance Ministry announced on Wednesday, marking the sixth coupon settlement since the country began restructuring its debt.
In a statement, the ministry said the payment is intended “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 latest settlement is the second “full cash” coupon payment with no payment-in-kind component, the ministry added, noting that this reflects “improved fiscal capacity and a stronger solvency position.”
Ghana, the world’s second-largest cocoa producer, launched the DDEP in late 2022 as part of a broader effort “to restore debt sustainability after a severe fiscal squeeze that triggered a debt overhaul and weighed on banks, asset managers and pension funds with large holdings of government paper,” the statement said.
The payment covers coupon obligations on cedi-denominated instruments exchanged under the DDEP, in line with the programme’s restructuring memorandum and the government’s “broader debt-management and fiscal-consolidation strategy.”
Looking ahead, the ministry said Ghana intends “to meet future DDEP obligations, strengthen liquidity buffers and improve macroeconomic conditions to ease inflation and interest rates.”
The government also plans “to return to the domestic debt market this year” and has already chosen bond market specialists to lead the process, it added.
Boluwatife Enome
Follow us on:
