The government has officially lifted DDEP bond issuance restrictions, signaling renewed confidence in Ghana’s domestic debt market and a shift toward longer-term financing.
In a statement, the Ministry of Finance announced the expiration of the three-year limitation that barred the issuance of new domestic bonds following the country’s debt default and subsequent Domestic Debt Exchange Programme (DDEP) in 2023.
The Ministry explained that the restriction was initially introduced to stabilise the domestic market and restore investor confidence during a period of severe fiscal and financial stress.
Improving Economic Conditions
According to the Ministry, the decision comes at a time when key economic indicators have strengthened. Inflation has declined significantly, investor sentiment has improved, and the broader macroeconomic environment has stabilised.
Officials noted that these gains are supported by a robust medium-term debt management strategy and the rebuilding of fiscal buffers, which together have improved the government’s capacity to re-enter the domestic bond market responsibly.
Since 2025, the government has met all obligations under the restructured bonds, honouring every coupon payment. The Ministry said this track record demonstrates “credibility, fiscal discipline, and commitment to responsible debt management,” helping to rebuild trust among investors and market participants.
Shift Away from Short-Term Borrowing
With the restrictions lifted, government will now be able to issue longer-dated domestic bonds, a move expected to reduce reliance on short-term Treasury bills.
Heavy dependence on Treasury bills in recent years has increased refinancing risks and contributed to higher short-term borrowing costs. Officials believe access to longer-term instruments will help improve debt sustainability and provide greater certainty for budget financing.
The policy shift is also expected to deepen the domestic capital market by expanding the range of investment options available to institutional and retail investors.
Acknowledging Public Support
The Ministry expressed appreciation to citizens for their patience during the difficult adjustment period following the debt restructuring.
President John Dramani Mahama’s administration, the statement said, remains grateful to Ghanaians “for their forbearance and cooperation” as the country worked to restore macroeconomic stability.
The lifting of DDEP bond issuance restrictions marks a key milestone in Ghana’s post-restructuring recovery, as authorities seek to balance prudent debt management with the need to support economic growth and long-term financial stability.
READ ALSO: Ghana Fuel Stocks Sufficient Despite Middle East Tensions – NPA
