Accra, Feb. 18 – Government has paid GHS10 billion in interest obligations under the Domestic Debt Exchange Programme (DDEP), marking the sixth coupon payment since the programme was introduced.
A statement issued by the Ministry of Finance Ghana said the latest payment represents the second consecutive full cash settlement without any Payment-In-Kind component, indicating improved fiscal capacity and solvency.
The statement explained that the settlement covered cedi-denominated DDEP coupon obligations in line with the restructuring framework and government’s broader debt management and fiscal consolidation strategy.
It noted that the timely payment sends a strong positive signal to both domestic and international investors, reinforces market confidence, and is expected to support Ghana’s credit outlook.
The settlement is also expected to strengthen stability within the financial sector, particularly among banks and pension funds, which hold significant volumes of government securities.
Government reaffirmed its commitment to meeting all future obligations under the programme, citing stronger fiscal buffers, improving macroeconomic conditions, declining inflation, lower interest rates, and a relatively stable cedi.
Ghana introduced the DDEP in December 2022 as part of efforts to restore debt sustainability and macroeconomic stability following severe fiscal pressures.
The programme forms a key component of the country’s debt restructuring agenda under a US$3 billion Extended Credit Facility supported by the International Monetary Fund (IMF), approved in May 2023.
It aims to stabilise the economy, rebuild investor confidence, and strengthen foreign exchange reserves. Under the programme, most domestic bonds were restructured to reduce interest costs and ease debt servicing pressures, creating fiscal space for critical public spending.
The IMF has since commended Ghana’s progress, highlighting improvements in fiscal discipline, inflation control, and debt restructuring outcomes.
Analysts say consistent and timely servicing of restructured debt remains essential to sustaining investor confidence, maintaining financial sector stability, and supporting Ghana’s eventual return to international capital markets.
No comments:
Post a Comment