DDEP: NPP Govt Built Buffers for Seamless Debt Servicing- Former Finance Minister

Former Minister for Finance, Mohammed Amin Adam has tried giving his government the credit for the seamless debt servicing the current administration is enjoying.

It comes after the government announced the payment of GH₵6.081 billion and GHS3.46 billion respectively in Payment-In-Cash (PIC) and Payment-In-Kind (PIK) to bondholders and payment into the Debt Service Recovery Cedi Account (Sinking Fund) an amount of GHS9.7 billion as a buffer for the 5th DDEP coupon that will fall in July and August 2025.

In a Facebook post, Amin Adam said his erstwhile government not only honoured three previous payments before leaving office but never defaulted.

“The NPP government paid a total of GHS17.25 billion in PIC and GHS9.77 billion in PIK to bondholders. Also, individuals who did not tender their bonds were paid coupons amounting to GHS515.17 million at various times between 2023 and 2024, in line with the MoU signed between the Government and the Coalition of Individual Bondholders.”

According to him, the fourth payment made by the new government was made smooth by the Buffers instituted by the Akufo-Addo government.

“Since the restructuring of the Domestic Debts, the previous NPP government has not defaulted on coupons. Buffers were also built in the Debt Reserves Accounts to support upcoming debt service obligations such as the 4th coupon payments.”

Previous Payments
In a Breakdown, he said a total of GHS8.55 billion was paid in August 2023 which included GHS5.42 billion PIC and GHS3.13 billion PIK deposit; GHS9.11 billion in February 2024 including GHS5.85 billion PIC and GHS3.27 billion PIK deposit; and GHS9.35 billion in August 2024 including GHS5.98 billion PIC and GHS3.38 billion PIK deposit.

Source: opemsuo.com/Hajara Fuseini