Consistent debt repayment to improve Ghana’s rating status; default extremely low

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The consistent debt commitments are expected to help Ghana lift its Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) from its current Restricted Default status to a triple C.

This should further boost investor confidence in the near term.

Databank Research said it remain optimistic that the likelihood of a default is low, given the sovereign's strong commitment to restoring its creditworthiness through International Monetary Fund-driven fiscal reforms, strategic debt management, and strong economic growth.

Last week, the Government of Ghana paid Eurobond coupons totalling US$346 million as part of the restructuring terms under its US$13 billion restructured external debt.

This payment follows broader efforts, including US$520 million paid in 2024, which comprised past due interest from 2022 and an agreed consent fee.

The next coupon payment is anticipated in July 2025, as the sovereign navigates fiscal challenges under an IMF programme amid a stabilising economy.

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Debt

LTFC