Ghana Puts a Big Pay‑off into Its Debt Plan

The Ghanaian government just cleared 10 billion cedis, about $910 million, in interest payments under its Domestic Debt Exchange Programme. This marks the sixth time the country has made a coupon payment since it started restructuring its debts in 2022. The ministry said the move is meant to calm both local and global investors, boost confidence in the market, and help keep Ghana’s credit rating strong. By paying the interest fully in cash—without swapping it for other securities—the government shows that its finances are getting steadier and that it can handle more debt.Ghana launched the programme after a severe fiscal crisis pushed the country into deep economic trouble and forced it to overhaul its debt. The country, which is second only to Brazil in cocoa production, has been working hard to make its borrowing sustainable. The interest payment covers the bonds that were swapped under the DDEP, following the rules set out in the restructuring plan. The aim is to meet future payments, build up liquid cash reserves, and create a healthier economic environment that can lower inflation and interest rates. The government also plans to go back into the domestic debt market later this year, using experts who will manage the process. In short, Ghana’s big interest payment is a sign that its debt strategy is gaining traction and that the country is trying to get back on solid footing.