Government pays 4th DDEP coupon, sets aside GHS9.7Bn for 5th coupon – Felix Kwakye Ofosu

The Ghanaian government has successfully settled the 4th Domestic Debt Exchange Programme (DDEP) coupon, demonstrating its commitment to meeting financial obligations and restoring confidence in the economy.

In a statement released on Monday, February 17, 2025, Felix Kwakye Ofosu, Minister for Government Communications and Spokesperson to the President, confirmed that the Ministry of Finance, following a directive from President John Dramani Mahama, has honored the Payment-In-Cash (PIC) coupon of GHS6.081 billion to all DDEP bondholders.

Additionally, the government has settled the Payment-In-Kind (PIK) portion of GHS3.46 billion, which has been deposited into bondholders’ securities accounts in line with the DDEP Memorandum.

To ensure smooth settlement of future obligations, the government has taken proactive steps by allocating GHS9.7 billion into the Debt Service Recovery Cedi Account (Sinking Fund) as a buffer for the 5th DDEP coupon, which is set to mature in July and August 2025.

Commitment to Economic Stability

Minister Kwakye Ofosu emphasized President Mahama’s dedication to honoring all DDEP commitments, reassuring investors and the financial sector of the government’s fiscal responsibility. He noted that additional measures would be outlined in the 2025 Budget Statement to further strengthen market confidence, enhance transparency, and prioritize prudent public spending.

Despite inheriting economic challenges from the previous administration, the government remains focused on stabilizing the Cedi, curbing inflation, and creating employment opportunities for the youth.

With these payments and the buffer in place, Ghana’s financial markets may see improved investor confidence as the government continues efforts to rebuild economic stability and fiscal discipline.