Ghana is set to conclude bilateral agreements for the restructuring of its $5.1 billion official bilateral debt by June, a goal that Finance Minister Dr. Cassiel Ato Forson has described as “ambitious.”

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This follows the signing of a Memorandum of Understanding (MoU) with the Official Creditor Committee (OCC) on January 28.

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This information is outlined in the 2025 Budget Statement and Economic Policy, which highlights Ghana’s fiscal strategies, including debt restructuring efforts aimed at stabilizing the economy.

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Highlighting the importance of this process, the Finance Minister stated, “We look forward to the support of this august House in achieving this objective within the established timeframe.”

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The agreement formalizes the key terms of the restructuring, which were outlined in an Agreement in Principle (AIP) reached on January 12, 2024. It includes an extension of debt service repayments and provides approximately $2.8 billion in debt relief. Additionally, the MoU establishes a cut-off date of December 31, 2022, and imposes limits on disbursements during Ghana’s IMF-supported program from 2023 to 2026.

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The signing of the MoU paves the way for negotiations with individual OCC member countries. As part of the process, Ghana has commenced data reconciliation and validation exercises with several creditors in preparation for the bilateral agreements.

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In addition to official bilateral debt restructuring, the government is engaging commercial creditors, including Chinese commercial lenders, plurilateral institutions, and private banks, to restructure approximately $2.7 billion in commercial debt. Discussions on draft Non-Disclosure Agreements (NDAs) are already underway, with a financial proposal for restructuring expected to be presented soon.

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Furthermore, Ghana’s Domestic Debt Exchange Programme (DDEP), launched in December 2022, has significantly influenced the domestic debt market. The government has relied on short-term securities to finance the budget, raising GH¢45.4 billion in net proceeds from treasury bill issuances.

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The government remains committed to honoring its debt obligations, having successfully paid GH¢19.0 billion in DDEP bond coupons in 2024 and an additional GH¢9.5 billion in February 2025. The Finance Ministry believes these efforts, coupled with effective engagement with market participants, will enhance transparency, restore investor confidence, and stabilize the financial market.

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The 2025 Budget Statement also notes an improvement in investor sentiment, reflected in declining interest rates on treasury bills. By the end of December 2024, the 91-day, 182-day, and 364-day treasury bill rates stood at 28.04%, 28.68%, and 30.07%, respectively—lower than the corresponding rates in 2023.

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The government has also updated its 2024 Debt Sustainability Analysis (DSA) to align with the revised medium-term fiscal framework and the third IMF Review macro-framework. The DSA assessed Ghana’s public debt distress by evaluating macro-fiscal developments and agreements reached with the OCC and Eurobond holders. It examined Ghana’s solvency and liquidity status, considering current and future debt service obligations and their impact on the country’s debt dynamics in the medium- to long-term.

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According to the analysis, Ghana’s external and public debt risk rating remains at ‘high risk’ of debt distress. The Present Value (PV) of the total debt-to-GDP ratio and the external debt service-to-revenue ratio are still above DSA thresholds in the near term but are projected to return to sustainable levels by 2028.

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Beyond bilateral debt, Ghana is actively engaging commercial creditors, including Chinese commercial lenders, plurilateral institutions, and private banks, to restructure approximately $2.7 billion in commercial debt. Discussions on draft Non-Disclosure Agreements (NDAs) are underway, with a financial proposal for restructuring expected to be presented soon.

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Additionally, the Domestic Debt Exchange Programme (DDEP), launched in December 2022, continues to impact Ghana’s debt landscape. In 2024, the government honored DDEP bond coupon payments totaling GH¢19.0 billion, including GH¢12.1 billion in cash payments and GH¢6.9 billion in payment-in-kind (PIK) payments. In February 2025, the fourth coupon payment of GH¢9.5 billion (including GH¢3.5 billion in PIK payments) was successfully honored. To finance the budget, the government issued short-term securities, raising GH¢45.4 billion in net proceeds from treasury bill issuances.

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Ghana’s domestic debt market has shown signs of improvement, with a gradual decline in interest rates due to improved investor confidence. By the end of December 2024, the 91-day, 182-day, and 364-day treasury bill rates stood at 28.04%, 28.68%, and 30.07%, respectively—lower than the corresponding rates in 2023, which were 29.36%, 31.95%, and 32.49%.

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The government remains committed to ensuring effective communication with market participants, increasing transparency, and restoring investor confidence, which will be crucial in sustaining economic stability.

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