Ghana’s domestic debt rose moderately from GH¢309.8 billion to GH¢333.8 billion by the end of 2025, according to the Bank of Ghana. However, despite the increase, the debt burden eased as a share of the economy due to strong growth in the country’s Gross Domestic Product, which led to a decline in the domestic debt-to-GDP ratio.

According to the March 2026 Monetary Policy Report by the Bank of Ghana, the increase in domestic debt came largely from the short-term instruments, marking the government's plan to borrow to build buffers to meet its financial obligations.

Also, the external debt increased in foreign currency terms to reflect new loan disbursement.

However, in local currency terms, it decreased from GH¢416.8 billion in December 2024 to GH¢307.2 billion in December 2025.

The downturn was attributed to the appreciation of the cedi alongside servicing of Eurobond and multilateral obligations, resulting in a reduction in the external debt stock denominated in local currency by GH¢125.2 billion (9% of estimated GDP).

Meanwhile, the provisional debt stock of the central government and guaranteed debt stood at GH¢640.99 billion (45.3% of GDP) at end-December 2025 from GH¢726.7 billion (61.8% of GDP) at end-December 2024.

Out of the total public debt, external debt was GH¢307.2 billion (21.7% of GDP) and domestic debt totalled GH¢333.8 billion (23.6% of GDP).

According to the Bank of Ghana, the sharp decline is reflected in both external and domestic debt-to-GDP ratios.

The decline in public debt was largely driven by the appreciation of the cedi, increased amortisation, and prudent borrowing practices, alongside lower borrowing costs and improved fiscal discipline, which contributed to a higher primary surplus.

Meanwhile, the International Monetary Fund (IMF) 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 the 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.

In an unrelated development, President Mahama 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 amount of 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.