Ato Forson: We are saving for GH¢54bn debt repayment

Finance Minister Dr Cassiel Ato Forson says the government has begun setting aside money to meet GH¢54 billion in Domestic Debt Exchange Programme (DDEP) repayments due next year, warning that Ghana cannot afford another debt crisis.

Speaking during a working visit by the Vice-President, Dr Forson said the government was taking early steps to ensure it meets its debt obligations and avoids a repeat of the economic turmoil that forced Ghana into debt restructuring in 2022.

He revealed that the government has already built sufficient financial buffers to honour two major DDEP repayments of GH¢10 billion each scheduled for this year.

The first payment was made in February, while the second is due in the first week of August.

"We are prepared to make that payment because we have built enough buffers to be able to pay that," he said.

However, the Finance Minister said the country's biggest challenge lies ahead.

"Next year alone we are seeing debt repayment. DDEP alone, we have to service debt about GH¢54 billion," he said.

Dr Forson disclosed that GH¢39 billion will fall due in a single day in February next year, making it necessary for the government to begin saving well in advance.

"We have to begin saving ahead of those bullets because we all know the repercussions of not servicing your debt and going into debt default, and we've seen it recently in 2022," he said.

The Finance Minister said Ghana's recent economic crisis showed the cost of unsustainable borrowing, comparing excessive debt to alcoholism.

"The good effect comes early, and the hangover comes later," he said.

Dr Forson said the government remained committed to restoring fiscal stability before shifting its focus to economic growth and job creation.

He said Ghana had completed about 18 months of fiscal consolidation, with six months remaining before transitioning to what he described as a "new economy" driven by growth and employment.

The remarks come after the Finance Ministry announced the early settlement of a $700 million Eurobond obligation following external debt payments totalling $1.4 billion in 2025.