Ghana’s Finance Minister, Dr. Cassiel Ato Forson, announced the country must repay over GH¢150 billion in domestic debt and $8.7 billion in external debt over the next four years. The majority of these obligations will occur in 2027 and 2028, posing significant economic risks. The government aims to confront these challenges head-on, promising to work toward economic improvement.
Dr. Cassiel Ato Forson, Ghana’s Minister of Finance, provided an overview of the country’s debt obligations during the 2025 Budget and Economic Policy presentation. He highlighted that Ghana must repay over GH¢150 billion in domestic debt between 2027 and 2028, as a direct result of the Domestic Debt Exchange Programme (DDEP) initiated by the previous government led by Nana Addo Dankwa Akufo-Addo. This amount represents roughly 11.6% of the country’s GDP, with significant payments of GH¢57.6 billion and GH¢52.5 billion due in 2027 and 2028, respectively.
Dr. Ato Forson cautioned that the debt service obligations for these years are particularly challenging and could pose substantial risks to the economy. He further elaborated on the government’s debt service for the current financial year, noting peaks in February, July, and August, totaling substantial amounts of GH¢9.9 billion, GH¢6.2 billion, and GH¢10.1 billion, respectively. The minister underscored the urgency and seriousness of the financial situation.
In addition to domestic debts, Dr. Ato Forson revealed that Ghana faces external debt obligations exceeding $8.7 billion over the next four years. This figure accounts for about 10.9% of GDP, with a heavy concentration of due repayments in the same years as the domestic debt, 2027 and 2028, where $2.5 billion and $2.4 billion will be required, respectively.
He noted that these years would be particularly taxing for the nation’s finances. Despite the enormity of the task ahead, Dr. Ato Forson assured the Ghanaian populace that the government is committed to managing and transforming the economic challenges at hand.
In summary, Ghana faces significant debt repayment obligations, with over GH¢150 billion in domestic debt and $8.7 billion in external debt anticipated over the next four years. The most burdensome periods are projected for 2027 and 2028, raising concerns about economic stability. Nevertheless, the government has pledged to tackle these challenges effectively, aiming for economic transformation for the country.
Original Source: www.ghanaweb.com
