Mid-year Budget Review: Gov’t builds GH¢15.6bn debt repayment war chest

Finance Minister Dr. Cassiel Ato Forson says the government has built a GH¢15.6 billion debt repayment fund to meet upcoming Domestic Debt Exchange Programme (DDEP) obligations.

He announced the development on Thursday while presenting the 2026 Mid-Year Fiscal Policy Review to Parliament, saying the fund demonstrates the government’s commitment to prudent debt management and timely repayment of inherited debt obligations.

The Finance Minister said the move comes as Ghana prepares to meet significant DDEP maturities in the coming years.

He noted that GH¢58 billion in DDEP bonds will mature in 2027, while another GH¢53 billion will fall due in 2028, bringing the total repayment obligation over the two years to GH¢111 billion.

“Meeting obligations of this magnitude requires advance planning, not last-minute scrambling. That is precisely why this Government has strengthened the Sinking Fund to set aside money to repay future debt obligations that we inherited,” Dr. Forson told Parliament.

He explained that under the 2026–2029 Medium-Term Debt Strategy, government committed seven per cent of non-oil tax revenues, together with proceeds from domestic bond issuances, to the Sinking Fund’s cedi account.

“Today I can report to this House that as of 22nd July 2026, that war chest holds GH¢15.6 billion,” he announced.

Dr. Forson added that government remains on track to increase the fund substantially before the end of the year to honour its debt commitments without disruption.

“We are on course to accumulate GH¢30 billion in the Sinking Fund by the end of 2026. This will be enough to repay the GH¢30 billion DDEP debt that will fall due in February 2027,” he said.

The Finance Minister stressed that the strategy is intended to reassure investors, credit rating agencies and the public that government is preparing adequately for future debt repayments instead of waiting until the obligations become due.

“Brick by brick, cedi by cedi, we are building the wall that will meet the wave so that when 2027 and 2028 come, Ghana will not scramble. Ghana will simply pay,” he stated.

According to Dr. Forson, the strengthened Sinking Fund signals the government’s determination to honour its financial commitments, sustain investor confidence and reinforce long-term fiscal stability as Ghana completes its debt restructuring programme.