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The country is scheduled to spend approximately GH¢150.3 billion in domestic debt service over the next four years.
This amounts to 11.6% of GDP in domestic debt payment obligations alone, with 73.3% of that amount due in 2027 (GH¢57.6 billion) and 2028 (GH¢52.5 billion).
Huge domestic debt service payments have been made as a result of the Domestic Debt Exchange Program, according to Finance Minister Dr. Cassiel Ato Forson.
According to Dr. Forson, who presented the 2025 Budget to Parliament, the 2027 and 2028 debt service commitments are significant bumps in the road.
“These humps are cancerous and pose significant risk to the economy but we shall fix it!”
“Our debt service obligation for this financial year is equally burdensome with significant humps in February (GH¢9.9 billion), July (GH¢6.2 billion) and August (GH¢10.1 billion). The fiscal challenges are further compounded by the significant short-term treasury bill maturities that we have inherited”, he clarified.
He claimed that these commitments, which amount to roughly GH¢111.1 billion, need to be rolled over each week, further taxing cash flow and liquidity needs.
The finance minister bemoaned Ghana’s substantial external debt service commitments, which amount to US$8.7 billion over the next four years and constitute 10.9% of GDP, with a particular emphasis in 2027 and 2028, in addition to domestic maturities.
He reiterated that in 2027 (US$2.5 billion) and 2028 (US$2.4 billion), 55% of the US$8.7 billion total external debt service is due.
“It seems the debt restructuring undertaken by the previous administration was designed to be 2027/2028-heavy. In spite of all these upcoming domestic and external debt service obligations, no buffers were built to cushion these unprecedented debt service burdens”, he stated.
Source: Ghanatodayonline.com
