Mahama administration begins building Sinking Fund with GHS9.7 billion payment

The Mahama administration has initiated the establishment of the Debt Service Recovery Cedi Account (Sinking Fund) with an initial payment of GHS9.7 billion. This fund is intended to serve as a buffer for the fifth Domestic Debt Exchange Programme (DDEP) coupon, which is due for payment in July and August 2025.

This was disclosed in a statement issued on Monday, February 17, 2025, by Felix Kwakye Ofosu, Spokesperson to the President and Minister for Government Communications.

Economists stress the importance of strengthening Ghana’s Sinking Fund to effectively manage the repayment of both restructured domestic and international debts, especially considering the country’s rising debt levels.

The government’s contribution to the fund is aimed at reducing the nation’s debt burden and ensuring timely payments of restructured obligations.

Meanwhile, the Ministry of Finance has fulfilled the Payment-In-Cash (PIC) coupon of GHS6.081 billion to all DDEP bondholders as of February 17, 2025. Additionally, the Payment-In-Kind (PIK) portion of GHS3.46 billion has been deposited into bondholders’ securities accounts, in line with the DDEP Memorandum.

> “Through the 2025 Budget Statement, the government will introduce further measures to restore market confidence, prioritize spending, and enhance transparency and accountability in public finances,” the statement added.

The government reaffirmed its commitment to restoring fiscal discipline, stabilizing the Cedi, controlling inflation, and creating employment opportunities for the youth despite inheriting a difficult economic situation from the previous administration.

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