The finance ministry reported that the government has paid around GH¢10 billion ($780 million) in interest to holders of bonds that were restructured under the Domestic Debt Exchange Program (DDEP).
As part of the program’s start to stabilize the nation’s public finances following a catastrophic debt crisis, the payment was made on Wednesday, marking the sixth coupon settlement.
The Finance Ministry reports that improving fiscal conditions are reflected in the fact that interest payments under the scheme have been settled entirely in cash for the second time, with no payment-in-kind component.
The payment is in line with the original restructuring agreement and refers to bonds swapped in cedi under the program. The government claims that it is a component of continuous attempts to stabilize the economy through fiscal consolidation and debt management.
Since banks and pension funds owned a sizable amount of the domestic bonds, officials anticipate that the prompt settlement will help rebuild trust among both domestic and foreign investors impacted by the restructuring.
Citing indications of economic improvement, including increased currency stability, lower interest rates, and less inflation, the government has promised to fulfill all upcoming obligations under the program.
In order to secure funding and restructure its unmanageable debt load, Ghana implemented the Domestic Debt Exchange Programme in 2023 as part of agreements reached with foreign creditors.
