2026 Mid-year Budget: How Gov’t Intends to Settle “Inherited” GhC111 billion in DDEP Bonds
Government says it will settle GhC111 billion in “inherited” Domestic Debt Exchange Programme bonds due between 2027 and 2028 by building up a dedicated Sinking Fund in advance, rather than scrambling for financing at the last minute.
The Minister said government has strengthened the Sinking Fund under the 2026/27 Medium Term Debt Management Strategy as a deliberate mechanism to pre-fund the obligations. He noted that meeting payments of this size requires advance planning.
“Meeting obligations of this magnitude requires advance planning, not last-minute scrambling. This is why the government has strengthened the sinking fund to set aside money to repay future debt obligations we inherited,” Dr Forson said.
Under the new plan, 7% of non-oil tax revenue together with proceeds from domestic bond issuance will be lodged into the fund each year. The fund is to serve specifically as a war chest for the 2027 and 2028 DDEP maturities.
Giving an update on progress, the Finance Minister said the fund already holds significant resources and is on track to meet the first obligation.
“As of July 22, the War Chest holds GhC15.6 billion. We are on course to accumulate GhC30 billion by the end of 2026. This will be enough to pay the DDEP debt that will fall due in February 2027,” he assured Parliament.
Dr Forson added that the approach is intended to protect macroeconomic stability and ensure the repayments do not crowd out spending on jobs, infrastructure and social protection. He reiterated that fiscal discipline remains central to keeping the country’s debt sustainable beyond 2028.
Presenting the 2026 Mid-Year Budget Review to Parliament on Thursday, Finance Minister Dr Cassiel Ato Forson disclosed the scale of the maturities facing the country in the next two years.
“In 2027, DDEP Bonds that will fall due are GhC58 billion. Another GhC53 billion will fall due in 2028. In two years alone, Ghana has to repay GhC111 billion. This is the true Agenda 111 Ghana must deal with,” he stated.
Dr Forson blamed the looming repayment cliff on how the DDEP was structured in 2022, saying it did not resolve the underlying debt problem but only pushed it forward.
“This is because the DDEP was not designed to solve Ghana’s problems. It was designed to postpone it deliberately, knowingly and cynically, unfortunately. Its architect mortgaged tomorrow to survive today. They had the duty to fix the roof. Instead, they moved the leak to another room and declared the house repaired,” he told lawmakers.
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