Ghana's Domestic Debt Exchange Programme: Recent Developments and Implications

On February 18, 2026, the Government of Ghana announced a payment of GH¢10 billion (approximately $910 million) in interest obligations under its Domestic Debt Exchange Programme (DDEP). This marks the sixth coupon settlement since the programme's inception in late 2022, aimed at addressing the country's severe economic crisis and restoring debt sustainability. Notably, this payment is the second consecutive full cash settlement, with no Payment-In-Kind (PIK) component, indicating improved fiscal capacity and solvency.

Ghana Pays GH¢10bn in DDEP Interest, Signals Strong Fiscal RecoveryGovernment pays GHC10 billion DDEP interestGovernment pays GH¢10 billion DDEP interest

The DDEP was launched as part of a broader strategy to restructure Ghana's domestic debt, which had become unsustainable due to high inflation and fiscal deficits. The programme involved exchanging short-term domestic securities for longer-tenor bonds with revised coupon structures, thereby easing immediate debt servicing pressures. The latest payment reflects the government's commitment to fulfilling its obligations under the DDEP and is intended to bolster market confidence among both domestic and international investors.

Government settles GHS10bn DDEP interest obligationsReutersBusiness Insider

Following the recent payment, cumulative coupon settlements under the DDEP have exceeded GH¢56 billion. The Ministry of Finance emphasized that this timely payment sends a strong positive signal to investors, reinforcing market confidence and supporting Ghana's credit outlook. The government aims to maintain regular and predictable coupon servicing to restore balance sheet stability and rebuild liquidity in the local bond market, which is crucial for financial sector stability, particularly for banks and pension funds holding government securities.

DDEP coupon payments hit GH¢56bn after 6th settlementGovernment pays GH¢10 billion DDEP interestGovernment settles GHS10bn DDEP interest obligations

In a statement, Finance Minister Dr. Cassiel Ato Forson highlighted that the government's actions reflect a commitment to meeting future DDEP obligations, supported by improving macroeconomic conditions, including declining inflation, lower interest rates, and a stable cedi. The Ministry reiterated its dedication to fiscal consolidation and debt management strategies, which are essential for sustaining investor confidence and narrowing risk premiums on government securities.

Government settles GHS10bn DDEP interest obligations

While the DDEP has been praised for its role in stabilizing Ghana's economy, it has also faced criticism. Some investors experienced significant losses due to the restructuring, which involved "haircuts" on existing bonds. This has raised concerns about the long-term implications for investor trust and the financial well-being of those affected, particularly pensioners.

Reuters

As Ghana continues to navigate its economic recovery, the DDEP remains a critical component of its strategy to restore fiscal stability and secure support from international partners, including the International Monetary Fund (IMF). The government is expected to return to the domestic debt market later this year, with plans to engage bond market specialists to facilitate this process. The ongoing commitment to timely debt servicing and fiscal discipline will be vital in rebuilding investor confidence and ensuring the sustainability of Ghana's economic recovery.

Government settles GHS10bn DDEP interest obligationsReutersBusiness Insider