President John Dramani Mahama has directed the Ministry of Finance to settle outstanding Domestic Debt Exchange Programme (DDEP) coupon payments and reinforce the country’s debt buffer through the Sinking Fund.
In line with this directive, the government has disbursed GHS6.081 billion in Payment-In-Cash (PIC) coupons to all DDEP bondholders. Additionally, the Payment-In-Kind (PIK) component of GHS3.46 billion has been deposited into the respective bondholders’ securities accounts, in accordance with the terms outlined in the DDEP Memorandum.
To enhance fiscal stability, the government has also injected GHS9.7 billion into the Debt Service Recovery Cedi Account (Sinking Fund). This move serves as a buffer for the fifth DDEP coupon, which is set to mature in July and August 2025.
President Mahama has reaffirmed his commitment to honoring all obligations under the DDEP. He further indicated that the 2025 Budget Statement will outline additional measures to restore market confidence, prioritize government spending, and improve transparency in public finances. Despite the economic challenges inherited from the previous administration, the government remains resolute in its efforts to stabilize the cedi, curb rising inflation, and create employment opportunities for the youth.
Key Takeaways:
- Debt Payments to Bondholders:
- The government has paid GHS6.081 billion in cash to bondholders under the DDEP.
- An additional GHS3.46 billion has been credited to bondholders’ securities accounts in the form of Payment-In-Kind (PIK), meaning they received bonds instead of cash.
- Building a Debt Buffer:
- The government has deposited GHS9.7 billion into the Sinking Fund (Debt Service Recovery Cedi Account).
- This fund will help cover payments for the 5th DDEP coupon due in July and August 2025 to ensure that the government can meet future debt obligations.
- Economic Strategy & Stability:
- The statement highlights that the Mahama-led administration is committed to fulfilling all debt obligations.
- The upcoming 2025 Budget Statement will introduce new policies aimed at restoring investor confidence, improving financial transparency, and managing government spending wisely.
- Despite economic difficulties inherited from the previous government, the administration is working to stabilize the cedi, control inflation, and create jobs for young people.
This letter reassure bondholders, investors, and the general public that the government is honoring its financial commitments, planning for future debt payments, and taking steps to improve the economy. It also subtly blames the previous administration for economic challenges, positioning President Mahama’s government as focused on restoring stability and growth.
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