Government plans to make an early DDEP debt repayment of GH¢29 billion and settle a US$590 million Eurobond obligation before the end of 2026, as it moves to reduce a heavy concentration of debt maturities next year.
Finance Minister Dr Cassiel Ato Forson disclosed the plan while presenting the 2027 Budget Statement to Parliament on Thursday, November 12.
The two payments are worth more than GH¢36 billion at prevailing exchange rates and are expected to take a sizeable portion of scheduled obligations out of 2027.
GH¢29bn ready for February DDEP principal
Dr Forson said the Cedi Sinking Fund had accumulated GH¢29 billion as of November 11, enough to cover the principal on Domestic Debt Exchange Programme bonds due on February 16, 2027.
Government has therefore opened an early redemption offer for holders of the affected bonds, effective November 12.
“To every DDEP bondholder whose bond falls due in February 2027, hear me clearly: your cash is ready. Come for your money,” Dr Forson told Parliament.
He said government was still building additional reserves to meet GH¢11.1 billion in interest payments falling due on the same date.
The February obligation forms part of about GH¢53 billion in DDEP payments scheduled for 2027.
A further GH¢12.5 billion falls due in August, consisting of GH¢3.3 billion in principal and GH¢9.2 billion in interest.
Dr Forson sought to reassure other bondholders that the government intended to meet the remaining obligations as scheduled.
“Every cedi owed to you, principal and interest, will be paid in full and on time,” he said.
US$600m buffer targeted for Eurobond payment
Government is also preparing to meet its external debt obligations ahead of schedule.
According to the Finance Minister, the US Dollar Sinking Fund held US$480 million as of November 11. Government expects the balance to reach about US$600 million by December.
That would provide enough cover for a US$590 million Eurobond payment due on January 2, 2027.
Another US$580 million in Eurobond obligations is scheduled for July 2, 2027.
Dr Forson said payments to DDEP bondholders since 2025 had reached GH¢41.36 billion, while Eurobond holders had received US$2.1 billion over the same period.
Government moves to reduce 2027 debt pressure
The early repayment strategy is intended to ease pressure on government finances next year and spread debt obligations more evenly.
Its completion will depend on participation in the early DDEP redemption offer and the availability of the targeted funds in the respective sinking funds.
Dr Forson said government was also introducing reforms to borrowing and financing practices to avoid another build-up of debt similar to the one that led to the domestic and external debt restructuring.
The Finance Minister maintained that outstanding principal and interest payments would be honoured according to their agreed schedules.
