Govt Contributes GHS9.7 Billion to Sinking Fund for Debt Management-GHANA

The Ghanaian government, under the leadership of the Mahama administration, has made a significant contribution to the Debt Service Recovery Cedi Account (Sinking Fund), paying GHS9.7 billion. This move is aimed at creating a buffer for the fifth Domestic Debt Exchange Programme (DDEP) coupon, which is due for payment in July and August 2025. Felix Kwakye Ofosu, the President’s spokesperson, announced this initiative on February 17, 2025, as part of efforts to mitigate the nation’s rising debt burden.

Economists have highlighted the importance of strengthening the Sinking Fund to ensure the country can effectively manage the repayment of restructured domestic and international debts. With Ghana’s debt stock on the rise, the government’s proactive move to boost the Sinking Fund is seen as a necessary step to ensure that obligations are met on time and to prevent further financial strain.

In addition to this payment, the Ministry of Finance has successfully fulfilled the Payment-In-Cash (PIC) coupon of GHS6.081 billion to all DDEP bondholders as of February 17, 2025. The Payment-In-Kind (PIK) portion of GHS3.46 billion has also been deposited into the bondholders’ securities accounts, in line with the terms of the DDEP Memorandum. These steps aim to reinforce the government’s commitment to meeting its debt obligations while managing its fiscal challenges.

Looking ahead, the government has promised further measures in the 2025 Budget Statement aimed at restoring market confidence. These measures will prioritize spending, enhance transparency and accountability, and focus on stabilizing the economy, including efforts to curb inflation, stabilize the Cedi, and create job opportunities for Ghana’s youth.

SOURCE: CITI NEWSROOM