Dr. Cassiel Ato Forson detailed Ghana’s impending debt obligations totaling GH¢150 billion domestically and $8.7 billion externally over the next four years due to restructuring measures from the prior administration. The majority of these payments are due in 2027 and 2028, presenting significant challenges for the economy. He assured citizens of the government’s resolve to manage these debts and improve the economy.
In a recent presentation of the 2025 Budget and Economic Policy, Dr. Cassiel Ato Forson, the Minister of Finance, outlined Ghana’s substantial debt obligations resulting from the government’s restructuring efforts. The country is projected to pay over GH¢150 billion in domestic debt from 2027 to 2028, attributed to the Domestic Debt Exchange Programme initiated by the administration of Nana Addo Dankwa Akufo-Addo.
Dr. Forson indicated that the domestic debt service payments would amount to approximately GH¢150.3 billion over the next four years, which represents 11.6% of the nation’s GDP. Notably, 73.3% of these payments fall due in the years 2027 and 2028, with significant amounts of GH¢57.6 billion and GH¢52.5 billion expected in each of those years respectively. He described these debt obligations as major economic challenges, stating they are “cancerous and pose a significant risk to the economy.”
Moreover, Dr. Forson reported that external debt obligations for Ghana would surpass $8.7 billion over the same period. This figure, which corresponds to 10.9% of GDP, also emphasizes the concentration of debt payments in 2027 and 2028, with 55% scheduled for servicing during these years.
He assured the public that, despite the daunting financial hurdles ahead, his administration is prepared to take on the responsibility of transforming the Ghanaian economy. This restructuring effort is part of broader measures started by former Finance Minister Ken Ofori-Atta under the Domestic Debt Exchange Programme, which began in late 2022.
Ofori-Atta’s measures included exchanging existing domestic bonds with four new bonds expected to mature between 2027 and 2037, offering 0% interest in the first year, followed by gradual increases. Following the domestic debt restructuring, external debts were also addressed to minimize the impact on the economy.
In summary, Ghana faces significant domestic and external debt obligations totaling GH¢150 billion and $8.7 billion respectively over the upcoming four years, predominantly impacting the years 2027 and 2028. Dr. Ato Forson has acknowledged the critical nature of these debts while committing to address them. The previously instituted debt exchange measures under former Finance Minister Ken Ofori-Atta will play a central role in easing the nation’s financial burdens and promoting economic transformation.
Original Source: www.ghanaweb.com
