The Government of Ghana has disbursed GH¢10 billion to service interest payments under the Domestic Debt Exchange Programme (DDEP), in what officials describe as a significant step toward strengthening public finances and rebuilding investor trust.
The disbursement marks the sixth coupon payment since the rollout of the debt exchange initiative and notably represents the second straight occasion the government has honoured the obligation entirely in cash, without resorting to any Payment-In-Kind (PIK) arrangement.
Authorities say the full cash settlement underscores improved liquidity conditions and stronger fiscal capacity, allowing the state to meet its commitments to domestic bondholders.
The payment relates to interest due on cedi-denominated bonds issued under the DDEP arrangement, consistent with the restructuring terms agreed upon with investors and aligned with the government’s broader plan to ensure prudent debt management and long-term fiscal discipline.
Analysts believe the timely servicing of these obligations sends a reassuring message to both local and foreign investors, reinforcing confidence in Ghana’s economic stabilisation programme. It is also expected to positively influence the country’s credit profile and support stability within the financial sector, particularly for banks, pension funds and other institutional investors that were significantly impacted by the restructuring exercise.
The DDEP was introduced as a key pillar of Ghana’s economic recovery strategy to ease mounting debt pressures and restore macroeconomic balance after a period of severe fiscal strain. In its initial phases, the programme combined cash payments with Payment-In-Kind instruments as part of efforts to manage limited fiscal space.
However, the shift to consecutive full cash coupon payments is being interpreted as a sign of improving macroeconomic fundamentals. Government officials point to easing inflation, moderating interest rates, improved fiscal buffers and relative currency stability as indicators supporting the turnaround.
The government has reiterated its resolve to continue meeting all future DDEP commitments as scheduled, stressing that consistent performance under the programme remains essential to securing durable financial stability and restoring confidence in Ghana’s domestic debt market.
Source: Wesleyannews.com
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