Ghana Pays GH¢9.7bn DDEP Coupon to Restore Investor Confidence Ahead of Bond Market Return

Ghana’s government has settled GH¢9.7 billion in coupon arrears under the Domestic Debt Exchange Programme (DDEP), a move expected to boost investor confidence as the country prepares to re-enter the bond market. This payment brings the total debt service for 2025 to GH¢19.4 billion, according to the Ministry of Finance. The settlement comes as authorities work to repair credibility following last year’s debt restructuring exercise.

Economist Professor Godfred Bokpin emphasized that meeting payment obligations on time is critical to restoring market trust. Speaking at Prudential Bank’s Special Customer Seminar on the cedi’s appreciation, Bokpin noted that fiscal predictability and adherence to the debt repayment roadmap are essential for investor reassurance. He highlighted that the government’s next goal is to reopen both the domestic and international bond markets.

“The predictability and sustainability of debt repayments are key to rebuilding confidence,” Bokpin said. “Without access to the capital markets, refinancing upcoming bullet payments in 2027 and 2028, as well as funding government projects, will be challenging.” He urged authorities to maintain transparency and fiscal discipline as Ghana moves toward financial stability.

The DDEP, launched in late 2022 as part of Ghana’s debt restructuring and IMF bailout conditions, was designed to ease short-term debt servicing pressure and create a more sustainable debt structure. The Finance Ministry stated that the latest coupon payment reflects the government’s commitment to honouring agreements under the Memorandum of Understanding signed with investors.

To safeguard future obligations, the government has established two dedicated sinking fund accounts—a Cedi Sinking Fund and a US Dollar Sinking Fund—in line with the 2025 Mid-Year Fiscal Policy Review and Public Financial Management Act. These accounts will serve as liquidity buffers to ensure timely redemption of bonds maturing between 2026 and 2028. The Finance Ministry reaffirmed its commitment to fulfilling all debt obligations on schedule, reinforcing Ghana’s efforts to rebuild fiscal credibility and investor trust.

Source: Citi newsroom