Government’s GH¢9.7bn Coupon Settlement Sparks Investor Confidence Under DDEP
Ghana’s latest coupon settlement under the Domestic Debt Exchange Programme (DDEP) is lifting investor sentiment and renewing confidence in the government’s fiscal discipline as it prepares for a possible return to the bond market.
The Ministry of Finance recently cleared GH¢9.7 billion in coupon arrears, bringing total debt service for the year to GH¢19.4 billion. Officials say the move reflects the government’s commitment to honouring its obligations under the programme.
Economist Professor Godfred Bokpin, speaking at Prudential Bank’s Special Customer Seminar on the cedi’s appreciation, stressed that predictability in debt repayments is vital to restoring credibility with both domestic and international investors.
“If you look at what we have gone through with the debt restructuring and the fact that it has wounded confidence in the market, I think the predictability and sustainability of keeping to the debt repayment roadmap is good for building confidence. Government itself is thinking about opening the bond market,” he noted.
He further cautioned that fiscal discipline and transparency will determine the success of Ghana’s re-entry into the debt market. Without consistent repayment, he warned, the country may struggle to refinance the looming bullet payments in 2027 and 2028 while also funding government projects.
The DDEP, launched in late 2022 as part of Ghana’s debt restructuring efforts to secure an IMF bailout, was aimed at making public debt more sustainable by easing short-term repayment pressures.
To safeguard future settlements, government has established two dedicated sinking fund accounts—a Cedi Sinking Fund Account and a US Dollar Sinking Fund Account—as liquidity buffers for the redemption of bonds maturing between 2026 and 2028.
The Finance Ministry has assured investors and the public that all subsequent obligations under the DDEP will be honoured fully and on schedule, reinforcing its resolve to rebuild fiscal credibility and regain access to both domestic and international capital markets.
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