Ghana’s Finance Minister, Dr. Mohammed Amin Adam, has announced that the successful execution of the Domestic Debt Exchange Programme (DDEP) saved the country an impressive $12 billion. Dr. Amin Adam shared this achievement while speaking at the 2024 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group on Wednesday, October 23.
The panel session focused on the significant challenges low-income countries face in managing debt amid financial instability, global economic uncertainties, and external pressures.
In his remarks, Dr. Amin Adam highlighted the pivotal role of the DDEP in stabilizing Ghana’s economy and relieving the country’s debt burden. He noted that this strategic program laid the foundation for a more sustainable fiscal outlook for Ghana, aligning it with broader debt restructuring efforts aimed at addressing longstanding financial challenges.
Launched in December 2022, the DDEP required domestic bondholders to exchange their existing bonds for new ones with adjusted terms, an essential step designed to reduce the government’s debt service obligations. Dr. Amin Adam explained that the program had achieved remarkable results and set a precedent for subsequent debt restructuring initiatives.
Building on the success of the DDEP, the Ghanaian government also pursued restructuring efforts with its bilateral and commercial creditors. Dr. Amin Adam shared that this led to substantial fiscal relief: “The DDEP was a great success, and we followed that with the restructuring of our bilateral debt, which also yielded positive results, resulting in significant savings of about $2.8 billion,” he explained.
Furthermore, Ghana recently concluded the restructuring of its Eurobond debt, totaling approximately $13 billion, marking yet another milestone. This process led to substantial benefits, including $5 billion in outright debt cancellation and an additional $4.3 billion in debt service relief. Altogether, the bilateral debt restructuring and Eurobond initiatives contributed to savings of about $12 billion, a major boost for the country’s financial recovery.
“We think this is a great success, and we are still engaged in ongoing restructuring with our commercial creditors, involving approximately $2.7 billion, and we are working diligently to conclude that,” Dr. Amin Adam stated.
His comments reflect the government’s commitment to implementing effective financial reforms to secure long-term economic stability for Ghana.
