The Government of Ghana has paid GH¢10bn in interest to bondholders under its Domestic Debt Exchange Programme (DDEP), marking what Finance Minister Dr Cassiel Ato Forson described as a sign of improving fiscal strength.
In a statement, Dr Forson said the payment represents the sixth coupon settlement under the programme and the second consecutive full cash payment made without a Payment-In-Kind (PIK) component.
He said the settlement covers cedi-denominated coupon obligations in line with the debt restructuring memorandum agreed with investors, as well as the government’s broader debt management and fiscal consolidation strategy.
The Domestic Debt Exchange Programme was launched as part of Ghana’s efforts to restructure its public debt and restore macroeconomic stability following a severe economic downturn.
According to the finance minister, the latest payment demonstrates strengthened fiscal capacity and solvency, and sends a positive signal to both domestic and international investors.
“It reinforces market confidence and supports Ghana’s credit outlook,” the statement said, adding that it would also enhance stability within the financial sector, including banks and pension funds.
The government said it remains committed to meeting future DDEP obligations. Dr Forson cited what he described as strong financial buffers, improving macroeconomic indicators, declining inflation, lower interest rates and a stable cedi as factors underpinning that commitment.
Ghana has been implementing a series of economic reforms under an international support programme aimed at restoring growth and ensuring long-term debt sustainability.
Economists say sustained timely payments under the DDEP will be critical to rebuilding investor trust and maintaining stability in the country’s financial system.
Source: www.kumasimail.com
