Ghana’s Finance Minister, Dr. Mohammed Amin Adam, has revealed that the successful implementation of the Domestic Debt Exchange Programme (DDEP) has saved the country a remarkable $12 billion.
He made this disclosure during a panel discussion at the 2024 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group, held on Wednesday, October 23.
The session focused on the debt challenges faced by low-income countries, many of which are dealing with financial instability exacerbated by global economic uncertainties and external shocks.
Dr. Amin Adam highlighted that the DDEP was a crucial policy measure that helped address Ghana’s financial difficulties by alleviating the nation’s debt burden and creating a more sustainable fiscal environment.
Launched in December 2022, the DDEP required domestic bondholders to exchange their existing bonds for new ones with different terms, reducing the government’s debt service obligations.
“The DDEP was a great success and laid the foundation for broader debt restructuring efforts,” Dr. Amin Adam stated. “It significantly contributed to stabilising our economy and relieving the pressure on public finances.”
He further explained that the government is working on restructuring approximately $2.7 billion with commercial creditors, while other debt restructuring initiatives have yielded substantial results.
The Finance Minister shared that Ghana’s bilateral debt restructuring efforts had already saved the country around $2.8 billion. Additionally, the recent restructuring of the country’s Eurobonds, worth $13 billion, resulted in another major success.
“The benefits we’ve gained so far include an outright debt cancellation of about $5 billion and debt service relief of $4.3 billion,” Dr. Amin Adam revealed. “Between the bilateral creditors and the Eurobond restructuring, we’ve achieved savings of about $12 billion. We are now focused on concluding the outstanding restructuring with commercial creditors.”
The Finance Minister’s comments underscore the importance of the DDEP in helping Ghana navigate its economic challenges, as well as the government’s ongoing efforts to secure long-term financial stability.