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Home Headlines Ato Forson Commits to Resolving Domestic Debt Exchange Challenges

Ato Forson Commits to Resolving Domestic Debt Exchange Challenges

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Domestic Debt Exchange Programme
Debt

Ghana’s Finance Minister-designate, Dr. Cassiel Ato Forson, has reassured the public that the government is dedicated to addressing the difficulties arising from the Domestic Debt Exchange Programme (DDEP) and ensuring that all necessary repayments are made in the coming years.

During his vetting before the Appointments Committee of Parliament on January 13, 2025, Dr. Forson acknowledged the complexities of the DDEP, which was implemented to restructure the country’s escalating debt. While the initiative was aimed at alleviating the debt burden, it has faced substantial backlash due to the losses experienced by creditors and concerns over the sustainability of the country’s fiscal situation.

“We will do whatever it takes to clear the harms that have been created as a result of the domestic debt restructuring,” Dr. Forson assured the committee. He expressed his administration’s commitment to mitigating the negative impacts of the debt restructuring initiative and working towards a stable economic recovery.

Dr. Forson outlined the country’s substantial repayment obligations following the debt restructuring, which will amount to GH¢12.6 billion in 2025, increasing to GH¢15.7 billion in 2026, and reaching GH¢53 billion in 2027. These figures underscore the ongoing pressure the government faces as it navigates the aftermath of the restructuring.

In addition to domestic debt, Dr. Forson highlighted the challenges of Eurobond repayments, revealing that Ghana has already paid $364 million, with another $1 billion due for payment annually starting in 2026. The government’s efforts to manage both domestic and external debt will be critical in ensuring fiscal stability moving forward.

The Finance Minister-designate’s assurances come at a time when Ghana is grappling with the broader implications of debt restructuring and its effects on economic growth and public confidence. His commitment to addressing these issues demonstrates a focus on both short-term recovery and long-term fiscal health.

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