In order to prepare for the fifth Domestic Debt Exchange Programme (DDEP) coupon, which is due in July and August of 2025, the Mahama administration has started to accumulate the Debt Service Recovery Cedi Account (Sinking Fund) with a payment of GHS9.7 billion.
This information was revealed in a statement released on Monday, February 17, 2025 by Felix Kwakye Ofosu, the President’s spokesperson and Minister of Government Communications.
Given Ghana’s growing debt load, economists stress the significance of fortifying the Sinking Fund in order to efficiently oversee the repayment of both domestic and foreign obligations.
The goal of the government’s contribution to the fund is to guarantee the prompt repayment of restructured liabilities and lessen the mounting debt load.
Meanwhile, the Ministry of Finance has fulfilled the Payment-In-Cash (PIC) coupon of GHS6.081 billion to all DDEP bondholders as of February 17, 2025. Additionally, the Payment-In-Kind (PIK) portion of GHS3.46 billion has been deposited into bondholders’ securities accounts in accordance with the DDEP Memorandum.
“Through the 2025 Budget Statement, the government will introduce further measures to restore market confidence, prioritize spending, and enhance transparency and accountability in public finances,” the statement added.
The statement maintained that government remains committed to restoring fiscal discipline, stabilizing the Cedi, curbing inflation, and creating jobs for the youth, despite inheriting a challenging economic situation from the previous administration.
