Deputy Finance Minister nominee Thomas Nyarko Ampem has urged for a non-partisan approach in discussions surrounding the Domestic Debt Exchange Programme (DDEP) payments. Speaking during his vetting before the Appointments Committee of Parliament on Monday, February 24, 2025, Ampem emphasized the need to focus on the positive impact of the payment provisions rather than politicizing the issue.
“I think we should concentrate on the good news that this sends or signals to the market,” Ampem stated, stressing the importance of reassuring investors and stakeholders of the government’s commitment to fulfilling its financial obligations. He explained that the timely fulfillment of DDEP payments will boost investor confidence, stabilize the financial sector, and support Ghana’s broader economic recovery efforts.
The Ministry of Finance has already taken significant steps in this regard, fulfilling the Payment-In-Cash (PIC) coupon of GHS6.081 billion to all DDEP bondholders as of February 17, 2025. Additionally, the Payment-In-Kind (PIK) portion of GHS3.46 billion has been deposited into bondholders’ securities accounts in accordance with the DDEP Memorandum. These payments, Ampem noted, reflect the government’s determination to restore market confidence and maintain fiscal discipline.
Further demonstrating its commitment to financial stability, the Mahama administration has initiated the buildup of the Debt Service Recovery Cedi Account, commonly referred to as the Sinking Fund, with a deposit of GHS9.7 billion. This fund is intended to serve as a buffer for the fifth DDEP coupon, which is due in July and August 2025. Ampem described this move as a critical step toward ensuring the sustainability of Ghana’s debt servicing obligations, while also providing a cushion against potential economic shocks.
Through the 2025 Budget Statement, the government plans to introduce additional measures aimed at restoring market confidence, prioritizing essential expenditures, and strengthening transparency and accountability in public financial management. A statement signed by Felix Kwakye Ofosu, Spokesperson to the President and Minister for Government Communications, reaffirmed the administration’s commitment to prudent fiscal policies and economic stabilization.
“The government is fully committed to fulfilling its obligations under the Domestic Debt Exchange Programme and ensuring that the necessary financial provisions are made to support economic recovery,” the statement noted.
Ampem also underscored the importance of fostering collaboration between government, financial institutions, and investors to ensure that Ghana’s economic reforms yield sustainable results. He noted that the successful execution of the DDEP payments is a strong signal to both domestic and international markets that Ghana remains a reliable economic partner.
The DDEP, which was initially introduced as part of Ghana’s broader economic restructuring strategy, aims to address the country’s debt vulnerabilities while creating a more sustainable financial framework. Since its inception, the program has faced criticism and skepticism from various stakeholders, particularly bondholders who were initially uncertain about the government’s ability to meet its obligations. However, the latest payments have gone a long way in addressing those concerns and reinforcing trust in the system.
Economic analysts have welcomed the government’s latest actions, noting that the timely disbursement of funds will enhance the country’s creditworthiness and improve market sentiment. Some have argued that a consistent approach to debt management, coupled with enhanced fiscal discipline, will be key to positioning Ghana’s economy for long-term stability.
Despite the positive outlook, Ampem acknowledged the challenges that remain, particularly in ensuring that future DDEP payments are met without disruptions. He called on all stakeholders, including opposition parties, to adopt a cooperative approach in discussions related to the program.
“This is not an issue that should divide us along political lines. We all have a role to play in ensuring that Ghana’s economy remains strong and resilient,” he remarked.
In recent years, Ghana has faced significant economic hurdles, including high inflation, exchange rate volatility, and mounting public debt. The implementation of the DDEP was part of a broader strategy to address these issues while securing a more favorable debt repayment structure.
Ampem emphasized that beyond making payments on time, the government must also work toward reducing the overall debt burden through economic growth and increased revenue generation. He highlighted the need for policies that will enhance domestic production, attract foreign investment, and create more employment opportunities for Ghanaians.
Financial experts have pointed out that while the government’s efforts to fulfill its DDEP obligations are commendable, long-term sustainability will require comprehensive economic reforms. These include enhancing revenue mobilization, improving public expenditure efficiency, and addressing structural weaknesses in the economy.
The Bank of Ghana has also expressed optimism about the government’s recent moves, with Governor Dr. Ernest Addison noting that successful execution of the DDEP payments will have positive ripple effects on the broader economy. “Ensuring that these payments are made on time will not only boost investor confidence but also contribute to overall financial stability,” he stated.
Opposition parties, while acknowledging the importance of meeting DDEP obligations, have called for more transparency in how the funds are managed. Some have raised concerns about the potential impact of these payments on other sectors of the economy, particularly social services and infrastructure development. However, government officials have reassured the public that the DDEP payments are being handled responsibly and in a way that balances fiscal sustainability with developmental priorities.
Ampem reiterated that the government remains committed to an inclusive and consultative approach in economic policymaking. He urged financial sector stakeholders, civil society organizations, and the general public to engage constructively in discussions about Ghana’s economic future.
“The road to economic recovery requires collective effort. We must all work together to ensure that our financial system remains stable and that Ghana continues on the path of sustainable growth,” he concluded.
As the country moves forward with its economic recovery agenda, the successful execution of DDEP payments will remain a key benchmark for assessing Ghana’s fiscal health. The government’s ability to meet these obligations without compromising essential public services will be crucial in shaping both investor confidence and public trust in economic governance.
