Dr. Cassiel Ato Forson detailed Ghana’s upcoming debts, amounting to over GH¢150 billion in domestic payments and $8.7 billion in external obligations due from 2027 to 2028. He characterized the debt burdens as major economic risks but assured the public of the government’s commitment to addressing these challenges.
Dr. Cassiel Ato Forson, Ghana’s Minister of Finance, has provided a detailed overview of the country’s impending debt obligations, as outlined in the 2025 Budget and Economic Policy statement. He emphasized that due to the Domestic Debt Exchange Programme (DDEP) initiated by the previous administration, the government will face domestic debt payments exceeding GH¢150 billion from 2027 to 2028, which constitutes 11.6% of the GDP. Notably, 73.3% of this amount is due in 2027 and 2028.
Ato Forson described the debt service requirements for 2027 and 2028 as “major humps,” which he labeled as “cancerous” in their potential economic impact. He pointed out that during this financial year, significant debt service payments will be needed, especially in February (GH¢9.9 billion), July (GH¢6.2 billion), and August (GH¢10.1 billion).
In terms of external obligations, the ministry announced that Ghana must also manage over $8.7 billion in external debt payments over the next four years. This figure represents about 10.9% of the GDP, with a significant portion also due in 2027 and 2028, specifically $2.5 billion in 2027 and $2.4 billion in 2028.
Ato Forson assured citizens that although the government faces a daunting financial situation, particularly in the upcoming years, their administration is committed to building and transforming the economy. The DDEP and external debt restructuring were first announced by former Finance Minister Ken Ofori-Atta in December 2022, outlining measures for the exchange of existing domestic bonds and details regarding new bond maturities and interest rates.
The Finance Minister’s report reveals the considerable domestic and external debt burden on Ghana in the coming years, primarily influenced by policies from previous administrations. A total of GH¢150 billion and $8.7 billion will be due from 2027 to 2028. Despite these challenges, Dr. Ato Forson remains optimistic about the government’s ability to manage the situation and enhance the nation’s economic standing.
Original Source: www.ghanaweb.com
