Ghana

Government settles GH¢10bn in DDEP interest obligations, pointing to solid fiscal performance.

The Government has disbursed GH¢10 billion in interest payments under the Domestic Debt Exchange Programme (DDEP), achieving a significant step forward in its fiscal consolidation agenda.

Announced on Wednesday, the payment represents the sixth coupon settlement since the programme’s inception and the second to be made entirely in cash, without any Payment-In-Kind component. The settlement fully covers cedi-denominated DDEP coupon obligations in accordance with the restructuring memorandum and the Government’s broader debt management framework.

Authorities say the development reflects improved fiscal strength and solvency, offering renewed assurance to both local and international investors. “This prompt payment delivers a strong positive signal to the market, boosts investor confidence, and is expected to enhance Ghana’s credit outlook,” the statement noted. Market analysts indicate that the cash settlement also supports stability within the financial sector, particularly for banks and pension funds with substantial exposure to domestic debt instruments.

The Government reaffirmed its commitment to honouring future DDEP obligations, pointing to solid fiscal buffers and strengthening macroeconomic indicators. Declining inflation, easing interest rates, and a relatively stable cedi have been cited as key drivers of this improved outlook. Observers view the successful disbursement as evidence of deepening fiscal discipline and the effectiveness of the country’s debt restructuring strategy.

By settling the obligation fully in cash, authorities aim to reassure investors of the Government’s capacity to meet its debt commitments without relying on alternative payment mechanisms. Officials add that the move is expected to lift market sentiment, attract fresh investment inflows, and lay a firmer foundation for sustainable economic growth, underscoring the increasing resilience of Ghana’s fiscal framework.