Audio By Carbonatix
Over the next four years, the country is expected to pay about GH¢150.3 billion in domestic debt service.
This represents 11.6% of Gross Domestic Product (GDP) in domestic debt service obligation alone, of which 73.3% due in 2027 (GH¢57.6 billion) and 2028 (GH¢52.5 billion).
According to Finance Minister, Dr. Cassiel Ato Forson, the Domestic Debt Exchange Programme has resulted in huge domestic debt service payments.
Presenting the 2025 Budget in Parliament, Dr. Forson said the debt service obligations of 2027 and 2028 are major humps.
“These humps are cancerous and pose significant risk to the economy but we shall fix it!”
“Our debt service obligation for this financial year is equally burdensome with significant humps in February (GH¢9.9 billion), July (GH¢6.2 billion) and August (GH¢10.1 billion). The fiscal challenges are further compounded by the significant short-term treasury bill maturities that we have inherited”, he explained.
These obligations, totaling about GH¢111.1 billion, he said, require rollover every week, placing additional pressure on cash flow and liquidity requirements.
Beyond domestic maturities, the finance minister lamented that Ghana faces significant external debt service obligations over the next four years totaling US$8.7 billion, representing 10.9% of GDP, with heavy concentration in 2027 and 2028.
Again, he said the 55% of the total external debt service of US$8.7 billion is due to be serviced in 2027 (US$2.5 billion) and 2028 (US$2.4 billion).
“It seems the debt restructuring undertaken by the previous administration was designed to be 2027/2028-heavy. In spite of all these upcoming domestic and external debt service obligations, no buffers were built to cushion these unprecedented debt service burdens”, he added.
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