By Adnan Adams Mohammed
In a significant boost to the nation’s economic recovery, the Ministry of Finance has announced the successful payment of GH¢10 billion in interest obligations under the Domestic Debt Exchange Programme (DDEP).
The disbursement, executed on Wednesday, February 18, 2026, marks the sixth coupon settlement since the program’s inception.
Crucially, officials highlighted that this represents the second consecutive “full cash” payment, moving away from the “Payment-In-Kind” (PIK) arrangements that characterized earlier stages of the debt restructuring.
Strengthening Market Confidence
The GH¢10 billion payout is being viewed as a litmus test for the sustainability of Ghana’s restructured domestic debt. Under the terms of the DDEP which saw a massive 85% participation rate from bondholders coupon rates were scheduled to “step up” to 10% starting in 2025.
“This settlement is a clear indication of our improving fiscal strength and liquidity conditions,” a Ministry of Finance spokesperson stated. “By meeting these obligations in full and on time, we are sending a powerful signal to both local and international investors that Ghana’s economy is breathing again.”
Relief for the Financial Sector
The timely interest payment provides critical liquidity to Ghana’s financial institutions, including local banks, insurance companies, and pension funds, which hold the bulk of the restructured bonds.
Analysts at the Bank of Ghana (BoG) noted that the steady flow of coupon payments is vital for stabilizing the balance sheets of commercial banks, which had faced severe capital pressures following the 2023 debt “haircuts.” The infusion of GH¢10 billion into the system is expected to:
● Lower Interbank Rates: As liquidity improves, the cost of borrowing between banks is anticipated to fall.
● Support Pension Funds: The payment ensures that retirement schemes can meet their ongoing obligations to pensioners without further delays.
● Anchor the Cedi: Improved investor confidence in local bonds reduces the pressure on the foreign exchange market.
The Road Ahead: A “Downward Path” for Debt
The 2026 Budget, recently presented to Parliament, themed “Resetting for Growth, Jobs, and Economic Transformation,” projects that Ghana’s public debt is now on a firm downward trajectory. The government aims to reach a debt-to-GDP ratio of 55% by 2028, down from the peaks of nearly 90% during the 2022 crisis.
While the GH¢10 billion payment is a victory for fiscal discipline, the Ministry emphasized that vigilance remains necessary. The government is also looking toward a new GH¢10 billion Domestic Infrastructure Bond later this year to fund road projects under the “Big Push” initiative, signaling a shift from survival-mode borrowing to growth-oriented investment.
