Ghana is preparing to pay more than GH¢36 billion in debt repayments before the end of 2026, in a major move aimed at reducing the country’s mounting repayment obligations in 2027 and restoring investor confidence.
Finance Minister Dr. Cassiel Ato Forson announced in the 2027 Budget presentation to Parliament on Thursday, November 12, that the government had mobilised GH¢29 billion to settle the principal component of Domestic Debt Exchange Programme (DDEP) bonds falling due in February 2027.
The government is also building its dollar reserves to meet a US$590 million Eurobond obligation due on January 2, 2027, signalling an aggressive effort to confront the next wave of debt maturities ahead of schedule.
Together, the two payments represent a significant financial commitment as Ghana seeks to avoid another period of intense debt repayment pressure.
GH¢29bn Ready as DDEP Bondholders Get Early Redemption Offer
Dr. Forson disclosed that the Cedi Sinking Fund had accumulated GH¢29 billion as of November 11, enough to cover the principal payment on DDEP bonds maturing on February 16, 2027.
In a significant announcement, he said the government was opening an early redemption offer effective November 12, allowing affected bondholders to receive their principal ahead of the scheduled maturity date.
He directly appealed to investors to take advantage of the offer, assuring them that the funds were available.
“To holders of the February 2027 ddep bonds, this early redemption offer is there for you, and I invite you to take it. I repeat, to every DDEP bondholder whose bond falls due in February 2027, hear me clearly: your cash is ready. Come for your money. Now to every other DDEP bondholder, hear me clearly: every cedi owed to you, principal and interest, will be paid in full and on time.”
Dr. Cassiel Ato Forson
The announcement comes against the background of GH¢53 billion in DDEP obligations scheduled for 2027.
Although the GH¢29 billion principal payment is covered, the government is still building additional financial buffers to meet the GH¢11.1 billion interest obligation due on February 16.
Another GH¢12.5 billion in DDEP payments is scheduled for August 2027, comprising GH¢3.3 billion in principal and GH¢9.2 billion in interest.
US$600m Target for January Eurobond Payment
Beyond the domestic debt market, the government is also racing to secure the funds needed to meet its external debt obligations.
According to Dr. Forson, the US Dollar Sinking Fund held US 480million as of November 11. The government expects the balance to increase to approximately US 600 million by December.
The target is intended to cover the US$590 million Eurobond obligation falling due on January 2, 2027.
The dollar mobilisation is particularly significant because another US$580 million Eurobond payment is scheduled for July 2, 2027.
Meeting the January obligation ahead of its deadline would provide some relief as Ghana navigates the substantial external debt payments expected next year.
GH¢41.36bn Paid to DDEP Bondholders Since 2025
Dr. Forson further disclosed that the government had paid GH¢41.36 billion to DDEP bondholders since 2025.
Payments to Eurobond holders over the same period had reached US$2.1 billion, highlighting the scale of resources already committed to servicing Ghana’s restructured debt.
The Finance Minister maintained that the government remained committed to honouring all outstanding principal and interest obligations in full and on time.
However, the success of the latest repayment plan will depend on the execution of the early redemption offer and the availability of the additional funds required to meet outstanding interest obligations.
Government Moves to Prevent Another Debt Crisis
The planned repayments form part of broader efforts to manage Ghana’s concentrated debt maturities in 2027 and prevent renewed pressure on public finances.
Dr. Forson also announced financing and borrowing reforms designed to prevent a recurrence of the debt crisis that forced the government to restructure its domestic and external obligations.
The early repayment strategy could offer investors greater confidence in the government’s ability to meet its commitments while creating some breathing room ahead of next year’s substantial debt obligations.
With GH¢29 billion already accumulated and the dollar sinking fund approaching its US$600 million target, the government is positioning itself to confront two major repayment deadlines before they arrive.
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