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.

Six months of the year, the government’s expenditure stood at GH¢109.7 billion, equivalent to 7.8% of the Gross Domestic Product (GDP).

The Finance Minister noted that the current expenditure was 14.3% below the programmed amount of GH¢128.0 billion, equivalent to 9.1% of GDP. According to the sector minister, this reflects the government’s strong expenditure control.

The minister noted that total expenditures (commitment) for 2025 have been programmed at GH¢270.9 billion, down from GH¢279.2 billion in 2024. Primary expenditure on a commitment basis (expenditures net of interest payments)—is projected at GH¢206.8 billion in 2025 (14.8% of GDP), presenting a significant decline from 19.8% of GDP in 2024 and lower than the 2023 level of 15.6% of GDP.

Providing a breakdown of the total expenditure in six months in Parliament, the minister said that primary expenditure, or non-interest expenditures on a commitment basis, amounted to GH¢84.3 billion, or 6.0% of GDP. This is an improvement of about GH¢13.3 billion over the target of GH¢97.5 billion, which is 7.0% of GDP.

Interest payments, on the other hand, amounted to GH¢25.4 billion, which is 1.8% of GDP. This is below the target of GH¢30.5 billion, which is 2.2% of GDP. Dr Cassiel Ato Forson explained that this was mainly due to lower domestic interest payments.

Domestic interest payments amounted to GH¢21.6 billion, against a target of GH¢26.5 billion, representing a reduction of GH¢4.9 billion, and this was mainly on account of lower than planned domestic borrowings and the decline in T-bill rates. External interest payments amounted to GH¢3.8 billion, against a target of GH¢4.0 billion. This stemmed from the appreciation of the Ghana cedi.

The cedi has recorded a remarkable turnaround in the first six months of 2025, appreciating by 42.6% against the US dollar. The cedi also gained 30.3% against the British pound and 25.6% against the euro during the same period.

Other expenditure, mainly comprising Energy Sector Levies (ESL), transfers, and Energy Sector Payment Shortfalls, amounted to GH¢11.4 billion, or 0.8% of GDP. This was 12.7% below the target of GH¢13.1 billion, or 0.9% of GDP for the period. Arrears clearance amounted to GH¢4.8 billion.

On a cash basis, the overall balance recorded a deficit of 1.1% of GDP. The deficit, according to Dr Cassiel Ato Forson, was largely financed from domestic sources with Net Domestic Financing (NDF) of GH¢13.1 billion, well below the GH¢18.7 billion target.

Net Foreign Financing was GH¢2.8 billion, mostly from the utilization of a GH¢4.5 billion International Monetary Fund (IMF) loan disbursement from the 1st to the 6th of January 2025, before the Mahama administration took office. Project loan disbursement was GH¢2.4 billion.

The Finance Minister noted that although Ghana is relying on the domestic market for financing, “We have borrowed less than we planned, signifying strong expenditure control and fiscal discipline.”

Presently, the government is revising both revenue and expenditure projections to reflect the impact of the additional revenue from the Energy Sector Levies (Amendment) Act, 2025 (Act 1141).

Total expenditure on a commitment basis has been revised downward to GH¢269.5 billion from the original budget projection of GH¢270.9 billion. However, primary expenditure has been revised upwards to GH¢209.6 billion from the original budget projection of GH¢206.8 billion.

Total revenue and grants have been revised upwards from the 2025 budget target of GH¢227.1 billion to GH¢229.9 billion, or from 16.2% of GDP to 16.4% of GDP, representing a nominal increase of 1.3%.

“The additional revenue of GH¢2.9 billion will come from the increase in revenues from the amendment to the Energy Sector Levies Act,” the minister added.

Interest payments have been revised downwards by GH¢4.3 billion, from the original budget projection of GH¢64.1 billion to GH¢59.9 billion. Domestic interest, on the other hand, has been revised downward by GH¢5.1 billion, mainly on account of gains from the reduction in the treasury bill rates, as a result of the implementation of our prudent debt management policies.

However, external interest payments have been revised upward by GH¢795 million to make additional provision for debt service due on post-cut-off date disbursements made by our bilateral creditors since 2023. Energy sector payments have also been revised upwards by GH¢2.9 billion to provision for fuel purchases for power generation.