Government DDEP coupon payouts exceed GHc56bn after sixth settlement

Government has paid more than GH¢56 billion in coupon obligations under the Domestic Debt Exchange Programme (DDEP) after settling a fresh GH¢10 billion interest payment this week.

The February 2026 disbursement represents the sixth coupon payment since the domestic debt restructuring began in late 2022. It is also the first time the government has cleared a DDEP coupon entirely in cash, without including a Payment-In-Kind (PIK) component.

In a statement issued in Accra, the Ministry of Finance said the GH¢10 billion payment demonstrates improved fiscal strength and solvency, reaffirming government’s commitment to honouring obligations under the programme.

“This payment marks the sixth coupon settlement under the programme and represents the second full cash payment without any Payment-In-Kind component, reflecting strengthened fiscal capacity and solvency,” the statement said.

The DDEP was introduced to tackle Ghana’s unsustainable public debt and to support the country’s economic recovery under an IMF-backed stabilisation programme. Through the initiative, short-term domestic securities were exchanged for longer-tenor bonds with revised coupon terms, reducing immediate debt service pressures and extending maturities.

Since August 2023, coupon payments have been made on a semi-annual basis. Earlier settlements combined Payment-In-Cash (PIC) amounts paid directly to bondholders with PIK portions credited as additional securities to investors’ Central Securities Depository accounts.

The first coupon payment in August 2023 totalled GH¢8.55 billion, made up of GH¢5.42 billion in cash and GH¢3.13 billion in PIK. In February 2024, government paid GH¢9.11 billion, comprising GH¢5.85 billion cash and GH¢3.27 billion in PIK.

The third coupon in August 2024 reached GH¢9.35 billion, including GH¢5.98 billion in cash and GH¢3.38 billion in PIK. In February 2025, the fourth payment amounted to GH¢9.54 billion, with GH¢6.08 billion paid in cash and GH¢3.46 billion issued as PIK instruments.

By August 2025, the fifth coupon stood at GH¢9.7 billion, pushing total payments for 2025 to GH¢19.4 billion. With the latest GH¢10 billion settlement in February 2026, cumulative coupon payments under the DDEP have now exceeded GH¢56 billion.

According to officials, the move toward full cash settlements reflects improved liquidity conditions and stronger fiscal buffers compared to the early phase of the restructuring, when high inflation and currency volatility put significant strain on public finances.

“The timely payment sends a strong positive signal to domestic and international investors, reinforces market confidence and is expected to support Ghana’s credit outlook while enhancing stability within the financial sector, including banks and pension funds,” the ministry stated.

Domestic banks, pension funds and asset managers hold substantial volumes of the restructured bonds, making consistent and predictable coupon servicing critical to restoring balance sheet stability and rebuilding liquidity in the local bond market following the 2023 restructuring.

The ministry linked the latest payment to improving macroeconomic indicators, including easing inflation, lower interest rates and relative stability of the cedi. Authorities also cited stronger fiscal buffers and continued consolidation efforts aimed at restoring debt sustainability over the medium term.

“Government remains fully committed to meeting future DDEP obligations, supported by strong buffers, improving macroeconomic fundamentals, declining inflation, lower interest rates and a stable cedi,” the statement added.

The more than GH¢56 billion paid so far highlights the scale of government’s domestic debt servicing effort since the exchange programme began. While the DDEP helped ease rollover risks and extend maturities, sustained cash payments are seen as vital to rebuilding investor confidence and narrowing risk premiums on government securities.

The latest full cash settlement is expected to further boost sentiment and liquidity in the domestic capital market as government continues its fiscal adjustment and economic recovery under the IMF-supported programme, which is scheduled to conclude in May 2026.