The government of Ghana has formally signed a bilateral debt restructuring agreement with the United Kingdom (UK) as part of efforts with the External Creditor Committee, to unlock funds for  'The Big Push' initiative and other government programs.

Taking to the X platform on Wednesday, September 24, the Finance Minister Dr. Cassiel Ato Forson revealed that the  US$256 million deal signed between the two countries is a key step in managing Ghana's debt better.“On behalf of the Republic of Ghana, I signed a Bilateral Debt Restructuring Agreement with the United Kingdom, represented by His Majesty’s Trade Commissioner for Africa, Mr. John Humphrey. The agreement covers about US$256 million and represents another important step in Ghana’s debt restructuring efforts,” he wrote.

According to the Finance Minister, the UK’s participation will motivate other lenders to act fast and finalize their part of the debt restructuring.

In addition, Ghana is working with UK Export Finance (UKEF) to reinstate financing for several priority projects, including the Bolgatanga–Bawku–Pulimakom Road Project, the Modernisation of the Komfo Anokye Teaching Hospital (KATH), the Obetsebi Lamptey Interchange and Ancillary Works Project Phase II, the construction of Phase 1 of the Tema–Aflao Road Project and the Redevelopment and Modernisation of Kumasi Central Market.

The deal was sealed in Accra on Wednesday, September 24, after UK Export Finance, and His Majesty’s Trade Commissioner to Africa, John Humphrey paid an official visit to Ghana. Also present at the signing ceremony were the UK High Commissioner to Ghana, H.E. Christian Rogg; the Chief Director of the Ministry of Finance, Mr. Patrick Nomo; and other officials.

Parliament on July 30 unanimously endorsed the government’s proposal to divert all royalties that will be received from oil revenues and mineral royalties to support the implementation of the Big Push Programme.

This comes after the government requested Parliament approve committing funds to assist in the construction of certain road projects. Mr Isaac Adongo, the Chairman of the Parliament's Finance Committee, while presenting the report by the Budget and Finance joint committee to the plenary, said, “the Committee has carefully considered the Referral, and it is of the opinion that the request is in the right direction.”

The Committee also noted that Parliament had already approved the policy and the allocation to the “Big Push” Programme in the 2025 Budget Statement. Granting the request would enable the Government to enter into multi-year contracts to execute the road infrastructure projects under the Programme.

“The Committee accordingly recommends to the House to approve the Request for the multi-year commitments for the selected road projects under the “Big Push” Programme contained in the Mid-Year Fiscal Policy Review of the 2025 Budget Statement and Economic Policy of the Government of Ghana, in accordance with Section 33 of the Public Financial Management Act, 2016, (Act 921),” Mr Adongo said.

The initiative aimed at improving road infrastructure across the country is estimated at GHC13.8 billion, and it is expected to be completed by 2028 with support from the country’s own financial resources. According to the 2025 budget, GH¢5.75 billion is owed by the Road Fund, with an allocation of GH¢2.81 billion programmed for road maintenance.

This represents a 155.5% increase from the 2024 allocation of GH¢1.1 billion, underscoring the government’s emphasis on sustaining Ghana’s road network. The Minister for Roads and Highways, Kwame Governs Agbodza, on Wednesday, July 30, revealed that his ministry has undertaken studies and prepared comprehensive engineering interventions and cost estimates for road projects under the Big Push Programme.

The Ministry of Finance has since issued commitment authorizations for some twenty-nine (29) road infrastructure projects under the Big Push Programme which include: Upgrading of Akosombo-Gyakiti-Kudikope Road, Road Dualization of Winneba-Mankessim Road, Rehabilitation of Mankessim-Ajumako-Breman Asikuma-Agona Swedru, Construction of nchi-Elubo Road, and Rehabilitation of Atimpoku-Asikuma Junction Road.

The government has also selected a number of abandoned road projects, for which no dedicated funding was allocated by the previous administration. They include rehabilitation and upgrading of Kasoa-Winneba Road, construction of Suame Interchange and Local Roads, reconstruction of Navrongo-Chuchuliga-Sandema Road, and upgrading of Tumu-Chuchuliga-Navrongo, including construction of a 36m span reinforced concrete bridge over the Kanyibie River and a 24m span reinforced concrete bridge over the Bechelihu river.

Meanwhile, the International Monetary Fund (IMF) has projected that Ghana’s total debt stock will decline to sixty percent (60%) of GDP by the end of 2025.

The Bretton Woods institution attributed this anticipated improvement to the debt restructuring programme implemented by the erstwhile government, noting its positive impact in placing the country on a path toward debt sustainability.

During the IMF press briefing held on September 11, 2025, in Washington, D.C., the Director of Communications, Julie Kozack, responded to a journalist’s question on Ghana’s debt sustainability and the impact of the restructuring agreement. She explained that Ghana’s “debt service indicators” have improved significantly because of the restructuring.

According to her, this development provides the country with greater space to recover economically and channel resources into key investments.“The recent restructuring agreement has significantly improved debt service indicators for Ghana, and that has created more space for economic recovery and also much-needed investments in the economy,” she stated.

Kozack added that IMF research indicates Ghana’s public debt will decline from about 82% of GDP in 2022 to around 60% in 2025, describing the trend as a “fairly steep reduction” that demonstrates progress toward fiscal stability.“According to our latest assessment, public debt is expected to fall fairly sharply from 82% in 2022. We estimate or project that it will reach 60% of GDP in 2025. That is a fairly steep reduction in public debt and marks a significant step toward durably restoring fiscal sustainability,” she said.

She recommended that Ghana continue implementing reforms such as boosting domestic revenue, strengthening public financial management, and cutting unnecessary expenditure.“Now, to make this stick for the country, Ghana will need to continue on the path of reform. Some of the reforms needed to really entrench debt sustainability include boosting domestic revenue in the country, strengthening public financial management to ensure that expenditures are effective and efficient, and, of course, in a broader sense, maintaining overall fiscal discipline. These are all essential to lock in the recent gains,” she added.

On the issue of cost-cutting and excessive spending, the current government has taken steps, including reducing the size of the Cabinet and scrapping DSTV subscription payments for diplomats and at the Jubilee House.

President Mahama has ordered the discontinuation of all DSTV and other satellite TV subscription payments at the Presidency. This forms part of the government’s reset agenda to cut costs and save taxpayers’ money, according to the Minister of State for Government Communications, Felix Ofosu Kwakye."I can reveal to you that if you come to this house, there's no office in this house that is allowed to subscribe to DSTV or any satellite television," he said.

Speaking on JoyNews, Mr. Kwakye explained that the ban will eventually extend to all government agencies and institutions. While he admitted the decision may seem “trivial,” an internal review revealed that satellite TV subscriptions accounted for a notable share of operational expenses.“You would say that that is a trivial matter, but he has done that. Because when you computed the cost, it was a significant money. You can turn on the television that you see here, and you will find that I'm limited to local television stations. It is something that will be extended to all government agencies to ensure that we don't waste the taxpayers' money,” he added.

He further disclosed that more cost-cutting measures are under discussion and will soon be announced. President Mahama, he said, remains committed to accountability, transparency, and eliminating unnecessary government spending.

“This is a man deeply committed to making savings for the Ghanaian people. Governance necessarily involves taking tough decisions… but the citizenry must see corresponding levels of modesty on the part of government officials—and that’s what President Mahama is committed to doing,” he stressed.

Earlier in September, President Mahama also announced plans to end government funding for costly rental properties at Ghana’s diplomatic missions abroad. This measure, he said, will save the country $15 million annually.

Speaking at the induction ceremony for 15 distinguished individuals, the President emphasised that Ghana can no longer afford the financial burden of renting expensive accommodation for its missions overseas. He described the practice as wasteful and incompatible with the ruling National Democratic Congress (NDC) Reset Agenda.

He disclosed that the Cabinet has already approved a new policy, the Strategic Transition from Rental to Developing (STRIDE), which will shift foreign missions into state-owned properties. However, the Ministers of Foreign Affairs and Finance will review the policy to ensure smooth implementation.

The Mahama-led administration assumed office on what it describes as a “reset agenda”—an economic recovery and social transformation initiative designed to stabilise the economy and promote growth.

Among the measures taken so far is a reduction in government size, with the President appointing 56 ministers, four fewer than his 60-minister cap. The STRIDE policy, in particular, is expected to eliminate the huge losses Ghana incurs annually on rent for diplomatic missions by securing permanent, state-owned accommodation.

“From my latest briefing, a transaction advisor has been appointed, standard developments are being prepared, and funding mechanisms are already being negotiated. This shift will ensure that our missions abroad are housed in proper homes owned by the republic, reducing wasteful expenditure while safeguarding Ghana’s dignity on the international stage.

“Ghana cannot continue spending more than $15 million every year on renting properties abroad for our diplomatic use. This is not a judicious use of taxpayers’ resources, and the Reset Agenda is an immediate reversal of this trend,” he stated.

Presenting the 2025 mid-year budget review on July 24, Finance Minister Dr Cassiel Ato Forson noted that the government’s commitment to fiscal discipline, prudent debt management, and exchange rate appreciation has resulted in significant improvement in Ghana’s debt profile.

He revealed that the public debt reduced from GH¢726.7 billion as of the end of December 2024 to GH¢613 billion as of the end of June 2025. Ghana’s public debt reduced by GH¢113.7 billion in six months.

The sector minister noted that “for the first time in Ghana’s history, there is a negative 15.6% rate of debt accumulation.”

Ghana’s public debt-to-GDP ratio as of the end of June 2025 was 43.8%, down from 61.8% at the end of 2024. Ghana’s public debt as a percent of GDP reduced by 18% in six months. The country’s foreign debt, as a percentage of total public debt, declined from 57.4% as of the end of December 2024 to 49% by the end of June 2025.

“This has significantly improved Ghana’s debt sustainability,” the Finance Minister said while speaking on the floor of the House.

Touching on Ghana’s programme with the International Monetary Fund (IMF), the Finance Minister noted that Ghana remains on track with the implementation of the Programme. He revealed that the government’s commitment to fiscal discipline, prudent debt management and exchange rates has paved the way for a 5th review scheduled for September.

“The 5th Review, which is scheduled for September 2025, will be based on end-June 2025 data. Preliminary data shows that Ghana is on course to achieving most of the targets for the 5th Review. Mr. Speaker, our commitment to fiscal discipline, prudent debt management, and exchange rate appreciation has resulted in significant improvement in Ghana’s debt profile,” he added.

On commercial debt restructuring, the Finance Minister stated that the Ministry has made two debt service payments of about US$700 million to Euro bondholders. Dr Forson disclosed that beginning in August, the Ministry of Finance will commence the building of cash buffers to support the repayment of Ghana’s domestic debt service obligations relating to the Domestic Debt Exchange Programme bonds, which will fall due in 2027 and 2028.