Govt builds up Sinking Fund with GHS9.7 bn payment

The Mahama administration has initiated the buildup of the Debt Service Recovery Cedi Account (Sinking Fund) with a payment of GHS9.7 billion as a buffer for the fifth Domestic Debt Exchange Programme (DDEP) coupon, due in July and August 2025.

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

Economists emphasize the importance of strengthening Ghana’s Sinking Fund to effectively manage the repayment of restructured domestic and international debts, given the country’s rising debt stock.

The government’s contribution to the fund aims to alleviate the growing debt burden and ensure timely repayment 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 accordance 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 statement maintained that government remains committed to restoring fiscal discipline, stabilizing the Cedi, curbing inflation, and creating jobs for the youth, despite inheriting a challenging economic situation from the previous administration.

source: citinewsroom.com