Ghana’s Debt Obligations: GH¢150m Domestic and $8.7b External Over Next Four Years
Dr. Cassiel Ato Forson, during the 2025 Budget presentation, revealed Ghana’s significant debt obligations due to restructuring initiatives. The country must pay over GH¢150 billion in domestic debt and $8.7 billion in external debt from 2027 to 2028, posing significant economic risks. Nonetheless, the government is committed to managing these debts effectively.
In a recent presentation of the 2025 Budget and Economic Policy statement, Finance Minister Dr. Cassiel Ato Forson outlined the debt obligations of Ghana for the coming four years as a result of the debt restructuring undertaken by the Nana Addo Dankwa Akufo-Addo administration. He reported that the Domestic Debt Exchange Programme (DDEP) will necessitate over GH¢150 billion in payments between 2027 and 2028.
Dr. Forson emphasized that the DDEP has led to massive domestic debt service obligations, predicting that Ghana will owe approximately GH¢150.3 billion over the next four years, which constitutes 11.6% of GDP. He indicated that a substantial portion of this debt, amounting to 73.3%, will be due in 2027 (GH¢57.6 billion) and 2028 (GH¢52.5 billion).
The Finance Minister highlighted the severity of the country’s debt service obligations, describing the financial peaks in 2027 and 2028 as “major humps” that pose significant risks to the economy. He further noted that the current year’s financial obligations are also considerable, with notable payments due in February (GH¢9.9 billion), July (GH¢6.2 billion), and August (GH¢10.1 billion).
In addition to the domestic liabilities, Dr. Forson revealed that Ghana will be responsible for over $8.7 billion in external debts resulting from the restructuring facilitated by the Akufo-Addo administration. This external debt service obligation, which amounts to 10.9% of GDP, will see 55% of the total due in the years 2027 ($2.5 billion) and 2028 ($2.4 billion).
Dr. Forson committed to addressing the economic challenges ahead, assuring Ghanaians of the government’s capability to manage these debts effectively. He provided context regarding the DDE programme initiated by former Finance Minister Ken Ofori-Atta, which involved exchanging existing domestic bonds for four new bonds with various maturity dates and terms, aimed at enhancing debt sustainability.
In summary, Ghana faces significant debt service obligations resulting from the DDEP and external debt restructuring, amounting to over GH¢150 billion in domestic debt and $8.7 billion in external debt over the next four years. The major spikes in these debts in the years 2027 and 2028 are particularly concerning, but the Finance Minister asserts the government is prepared to manage and mitigate these financial burdens. Addressing these debts will be crucial for stabilizing and transforming the economy in the forthcoming periods.
Original Source: www.ghanaweb.com
