Finance Minister Dr Cassiel Ato Forson says government has started setting aside funds to meet a GH¢54 billion repayment obligation under the Domestic Debt Exchange Programme (DDEP) expected next year.

He said the move forms part of efforts to avoid debt distress and ensure that Ghana does not return to the challenges that led to the country’s debt restructuring programme.

Speaking during a working visit by the Vice President, Dr Forson disclosed that government has already built sufficient financial buffers to settle two major DDEP repayments due this year.

According to him, government paid GH¢10 billion in February and is preparing to settle another GH¢10 billion repayment expected in the first week of August.

“Ten billion, ten billion Ghana cedis each. So we paid one in February and one is also due first week in August — another GH¢10 billion. But I’m proud to say that we are prepared to make that payment because we have built enough buffers to be able to pay that,” he said.

The Finance Minister, however, said next year will present a bigger challenge, with significant debt obligations falling due.

“Next year alone we are seeing debt repayment. DDEP alone, we have to service debt about GH¢54 billion,” he stated.

Dr Forson added that government must begin preparations early because failure to meet debt obligations could have severe consequences for the economy.

“In February, we have to pay about GH¢39 billion in one day — GH¢39 billion Ghana cedis. And so that means that we have to begin saving ahead of those bullets because we all know the repercussions of not servicing your debt and going into debt default, and we’ve seen it recently in 2022,” he said.

The Finance Minister said Ghana’s recent economic difficulties demonstrate the dangers of pursuing an unsustainable fiscal path.

He compared excessive borrowing and spending without adequate planning to a temporary relief that eventually comes with long-term consequences.

“As for an unsustainable fiscal path, if you go on that path you’ll pay a difficult price for it. I’ve always said that it’s like alcoholism. The good effect comes early, and the hangover comes later,” he said.

Dr Forson said the government’s objective is to return the country to a path where economic growth and job creation become the main drivers of development.

“You borrow, you spend, you go happy one week, one day, and afterwards the hangover will be there for a long time, and everybody else will pay for that,” he added.

The Finance Minister said the government anticipated that restoring stability would require two years of strong fiscal consolidation.

He explained that Ghana has completed about 18 months of the adjustment programme, with approximately six months remaining before a shift towards a growth-focused economic strategy.

“We have always been aware that the problems we inherited would require two straight fiscal years of major consolidation. And so we went through that path, and we’ve seen 18 months of it,” he said.

“We are left with six months, and I’m sure after the six months we’ll have to change the course and move from shock therapy to what I call the new economy, where growth and jobs would drive the new order.”

The comments come after the Finance Ministry recently announced the early settlement of a $700 million Eurobond obligation, following external debt payments totalling $1.4 billion in 2025.

Dr Forson said the government’s approach is to strengthen fiscal credibility while creating the conditions for sustainable growth.