Govt targets GH¢30bn Sinking Fund to meet DDEP obligations
The Government has projected to accumulate GH¢30 billion in the Sinking Fund by the end of this year as part of efforts to prepare for the repayment of obligations under the Domestic Debt Exchange Programme (DDEP), with the first major maturity falling due in February 2027.
As of July 22, 2026, the Fund had accumulated GH¢15.6 billion, representing more than half of the targeted amount and underscoring the government’s commitment to strengthening debt management and ensuring timely repayment of future debt obligations.
The Finance Minister, Dr Cassiel Ato Forson, announced this when he presented the 2026 Mid-Year Budget Review to Parliament last Thursday.
The review, presented on the theme: ‘Resetting for Growth, Jobs, and Economic Transformation – 2026 Mid-Year Fiscal Policy Review,’ was in accordance with Section 28 of the Public Financial Management Act, 2016 (Act 921).
Dr Forson said the government remained on course to build the Sinking Fund to GH¢30 billion by the close of the year, describing it as a financial buffer that would enable the country to meet its debt obligations without undue pressure on the public purse.
“Today, I can report to this House that as of July 22, 2026, that war chest holds GH¢15.6 billion. We are on course to accumulate GH¢30 billion in the Sinking Fund by the end of 2026. This will be enough to repay the GH¢30 billion DDEP debt that will fall due in February 2027,” he stated.
He said the government was taking a proactive approach to debt management to avoid the challenges associated with last-minute borrowing to meet maturing obligations.
“Brick by brick, cedi by cedi, we are building the wall that will meet the wave so that when 2027 and 2028 come, Ghana will not scramble. Ghana will simply pay,” he stressed.
The Finance Minister disclosed that while Ghana’s debt restructuring programme was nearing completion, significant debt repayments remained ahead.
According to him, DDEP bonds worth GH¢58 billion will mature in 2027, while another GH¢53 billion will fall due in 2028, bringing the total debt repayments over the two-year period to GH¢111 billion.
He said these obligations highlighted the need for prudent planning and disciplined fiscal management.
To ensure adequate resources are available, Dr Forson explained that under the 2026–2029 Medium-Term Debt Strategy (MTDS), the government had committed seven per cent of non-oil tax revenues, together with proceeds from domestic bond issuances, to the Sinking Fund Cedi Account.
He noted that the arrangement would provide a dedicated pool of funds to meet future debt repayments while strengthening investor confidence in Ghana’s fiscal management framework.
Dr Forson said the strengthened Sinking Fund also sent a strong signal to investors, credit rating agencies and the Ghanaian public that the government was committed to honouring its financial obligations through careful planning and responsible public financial management.
He emphasised that the strategy would help safeguard macroeconomic stability and reinforce confidence in the country’s debt sustainability efforts.
BY KINGSLEY ASARE
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