President Mahama Directs Finance Ministry To Settle DDEP Payments And Strengthen Debt Buffers

President Mahama directs Finance Ministry to settle DDEP payments, strengthen debt buffers.

The Ghanaian government has taken significant steps to address its domestic debt obligations, with President John Dramani Mahama directing the Ministry of Finance to settle outstanding payments to bondholders under the Domestic Debt Exchange Programme (DDEP).

In a statement released Monday by the Presidency Communications office, the Ministry of Finance has honoured a Payment-In-Cash (PIC) coupon of GHS6.081 billion to DDEP bondholders. Additionally, the government has processed a Payment-In-Kind (PIK) portion amounting to GHS3.46 billion, which has been deposited into bondholders' securities accounts in accordance with the DDEP Memorandum.

Looking ahead to future obligations, the government has allocated GHS9.7 billion to the Debt Service Recovery Cedi Account (Sinking Fund), establishing a buffer for the fifth DDEP coupon payment scheduled for July and August 2025.

"President Mahama is committed to the government's honouring of all obligations under the DDEP," stated Felix Kwakye Ofosu, MP and Spokesperson to the President. The administration plans to announce additional measures through its 2025 budget statement aimed at restoring market confidence, prioritizing strategic spending, and enhancing transparency in public finances.

The government's actions come amid efforts to stabilize the economy and address inherited economic challenges. The administration has outlined its commitment to restoring fiscal prudence while ensuring value for public expenditure. Key objectives include stabilizing the currency, controlling inflation, and creating employment opportunities for Ghana's youth.

Presidency Communication

These financial measures are expected to have broad implications for Ghana's economic recovery and could potentially impact market confidence and investment in the country. Financial analysts suggest that consistent adherence to debt obligations could help improve Ghana's standing in international markets and contribute to long-term economic stability.

The announcement represents a significant step in Ghana's ongoing economic management efforts, with potential positive implications for both institutional investors and individual bondholders who participated in the DDEP program.