Finance Minister Cassiel Ato Forson has criticized the previous government's Domestic Debt Exchange Programme (DDEP), saying it was set up in a way that would make repaying debts much harder in 2027 and 2028.

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Presenting the first budget of the Mahama government in Parliament, he expressed surprise that such a plan was approved but promised that his administration would fix it.

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"Right Hon Speaker, it seems the debt restructuring undertaken by the previous administration was designed to make 2027 and 2028 debt repayment heavy, sadly. Mr Speaker I don't know how come we sat and allowed that design to happen, Mr Speaker that I say we will fix it".

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About DDEP

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The Domestic Debt Exchange Program (DDEP) was initiated by the Akufo-Addo government in 2023 as part of Ghana's broader debt restructuring strategy under an International Monetary Fund (IMF) program. The primary goal of the DDEP was to address the country's economic challenges and restore fiscal stability.

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The program involved restructuring domestic debts, which included issuing new bonds with different terms to replace existing ones. This move aimed to reduce the debt burden and create a more sustainable debt profile for the country.

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The Akufo-Addo administration ensured timely coupon payments to bondholders under the DDEP, with three payments made between August 2023 and December 2024.

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These payments were made in both Payment-In-Cash (PIC) and Payment-In-Kind (PIK) forms, amounting to a total of GH₵17.25 billion in PIC and GH₵9.77 billion in PIK. Additionally, individual bondholders who did not tender their bonds were paid coupons totaling GH₵515.17 million during this period.

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The program faced criticism from some bondholders, but the government maintained its commitment to meeting financial obligations and restoring confidence in Ghana's financial markets.

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