The government has transferred GHS9.7 billion into the Sinking Fund to support upcoming payments for the fifth Domestic Debt Exchange Programme (DDEP) coupon, due in July and August 2025.
This was revealed in a statement issued on Monday, February 17, 2025, by Felix Kwakye Ofosu, Spokesperson to the President and Minister for Government Communications. The deposit forms part of the administration’s strategy to manage debt repayment efficiently and reduce financial strain on the economy.
Economic analysts have welcomed the move, emphasizing that a well-funded Sinking Fund is essential for sustainable debt management, especially as Ghana navigates its ongoing economic recovery. The initiative is expected to ensure timely payments on restructured domestic debt while reinforcing market confidence.
President John Mahama had earlier committed to reviving the Sinking Fund to prevent future liquidity challenges in debt servicing. He highlighted plans to channel petroleum revenue into the fund, in accordance with the Petroleum Revenue Management Act, 2011 (Act 815), to ensure a steady flow of resources for repaying obligations.
Ghana previously benefited from a structured savings approach through the Sinking Fund, which helped the country meet its $750 million Eurobond repayment in 2017. However, the previous administration discontinued the initiative, a decision former Finance Minister Seth Terkper argued left the country financially exposed and overly dependent on emergency interventions from the Bank of Ghana.
Meanwhile, the Ministry of Finance has confirmed that all DDEP bondholders have received the Payment-In-Cash (PIC) component of GHS6.081 billion as of February 17, 2025. Additionally, the Payment-In-Kind (PIK) segment, totaling GHS3.46 billion, has been credited to bondholders’ securities accounts in line with the DDEP Memorandum.
“As part of the 2025 Budget Statement, the government will introduce additional measures to strengthen market confidence, streamline public expenditure, and improve financial transparency,” the statement noted.
Despite economic hurdles inherited from the previous administration, the government reaffirmed its commitment to restoring fiscal discipline, stabilizing the local currency, controlling inflation, and generating employment opportunities.
