Gov’t Settles GH¢10b DDEP interest, boosts investor confidence

The Government has successfully paid GH¢10 billion in interest obligations under the Domestic Debt Exchange Programme (DDEP), marking a significant milestone in the country’s ongoing economic recovery efforts.

The latest payment represents the sixth coupon settlement under the programme and notably stands as the second consecutive full cash payment made without any Payment-In-Kind component. The development signals growing fiscal strength and improved government solvency.

The Finance Minister, Dr. Ato Forson in a press statement said the settlement covers cedi-denominated DDEP coupon obligations and forms part of government’s broader strategy to restructure public debt while strengthening fiscal discipline.

Financial analysts believe the timely settlement sends a strong and reassuring signal to both domestic and international investors. The move is expected to reinforce market confidence, improve the country’s credit outlook, and further stabilise the financial sector, particularly banks and pension funds that were heavily impacted during the debt restructuring process.

Government has reiterated its commitment to honouring all future DDEP obligations. Officials attribute the ability to meet these payments to improved macroeconomic indicators, including declining inflation, easing interest rates, and relative stability of the cedi.

Economic watchers say sustained fiscal discipline and consistent debt servicing could play a crucial role in restoring investor trust and strengthening the country’s economic resilience in the coming years.