The Spokesperson to the President, Hon. Felix Kwakye Ofosu, has dismissed claims by the Minority in Parliament that the government’s recent payment of GHS 6 billion to bondholders was made possible due to financial buffers left by the previous New Patriotic Party (NPP) administration.
Addressing the media, Hon. Kwakye Ofosu, who doubles as the Minister of Government Communications emphasized that these claims were entirely false.
He strongly asserted that the National Democratic Congress (NDC) government, under the leadership of President John Dramani Mahama, had taken deliberate steps to reactivate the Sinking Fund and ensure that Ghana met its financial obligations to bondholders.
Providing a detailed breakdown of the debt service reserve account, Hon. Kwakye Ofosu explained that the fund consists of both a Cedi-denominated account and a dollar-denominated account.
According to him, official records clearly indicate that under the NPP, the last transaction in the dollar account occurred on October 22, 2024, with a balance of just $64,387 at the time.
“We are talking about payments within the range of GHS 6 billion, and we all know that $65,000 cannot amount to that sum. Even at an exchange rate of GHS 15 to the dollar, this would amount to approximately GHS 1 million, which is insufficient to make the required payments”.
Hon. Felix Kwakye Ofosu (MP for Abura Asebu Kwamankese), Spokesperson to the President, and Minister of Government Communications
He further disclosed that on January 31, 2025, after the NDC assumed office, an amount of $96,915,182 was lodged into the account by the Minister of Finance Hon. Dr Cassiel Ato Forson to shore up the fund and enable the government to meet its debt obligations.
Disputing the NPP’s Buffer Narrative
The Minister also addressed claims that the previous administration had left behind substantial financial buffers, challenging the NPP to specify exactly where such funds were located.
“For officials of the former government to claim that these payments were made because of buffers they left, they need to point to the exact location of those buffers. The reality is that to make these payments, money has to be found and lodged in a designated account.
The Sinking Fund, or what is formally known as the Debt Service Reserve Account, is where these funds are kept, and records show that no significant contributions were made by the NPP before they left office”.
Hon. Felix Kwakye Ofosu (MP for Abura Asebu Kwamankese), Spokesperson to the President, and Minister of Government Communications
The Cedi-denominated account, according to Hon. Kwakye Ofosu, had a balance of GHS 155,463,435 as of January 2, 2025, a figure that falls far short of the GHS 6 billion paid to bondholders and the additional GHS 9 billion already deposited in the account for future payments in July and August.
“If you add up these funds, we are looking at GHS 15 billion needed for bondholder payments. Yet, when the NPP left office, the balance was only GHS 155 million. How could they possibly argue that they built a buffer?”.
Hon. Felix Kwakye Ofosu (MP for Abura Asebu Kwamankese), Spokesperson to the President, and Minister of Government Communications
Funds Mobilized by the NDC Government
To further substantiate his claims, Hon. Kwakye Ofosu revealed that transactions in the Debt Service Reserve Account only began to reflect deposits starting January 23, 2025, under the NDC administration.
He provided documentary evidence indicating that these deposits were responsible for the payments made to bondholders under the Domestic Debt Exchange Program.
“As of yesterday, February 18, 2025, the balance in the account stood at GHS 9,270,537,727.67. This amount serves as a buffer against debt obligations due in July and August. The facts are clear: the NPP’s claims are untrue, and the NDC government is solely responsible for mobilizing the funds required to meet these obligations”.
Hon. Felix Kwakye Ofosu (MP for Abura Asebu Kwamankese), Spokesperson to the President, and Minister of Government Communications
The Minister reiterated that President Mahama had issued a directive to the Ministry of Finance to reactivate the Sinking Fund, a critical step in ensuring that Ghana met its debt service obligations.
He noted that this policy intervention had been key to restoring investor confidence and stabilizing Ghana’s financial system.
“The reactivation of the Sinking Fund is a strategic decision by this government to prioritize debt servicing and ensure that no Ghanaian bondholder is left in distress. This is a responsible governance approach, as opposed to the NPP’s failure to maintain the necessary reserves before leaving office” .
Hon. Felix Kwakye Ofosu (MP for Abura Asebu Kwamankese), Spokesperson to the President, and Minister of Government Communications
In conclusion, Hon. Kwakye Ofosu urged the NPP Minority in Parliament to desist from misleading the public and to acknowledge the factual record. He stressed that governance should be about accountability and transparency rather than propaganda.
“The facts are there for all to see. Instead of making baseless claims, the NPP should be honest with Ghanaians about their failure to secure adequate reserves for bondholder payments. This government is focused on delivering solutions, not engaging in needless political debates”.
Hon. Felix Kwakye Ofosu (MP for Abura Asebu Kwamankese), Spokesperson to the President, and Minister of Government Communications
The debate surrounding Ghana’s debt management is expected to continue, especially as the government takes additional steps to stabilize the economy and meet its financial commitments.
