Accra: The Government has officially ruled out compensation for bondholders who experienced financial losses due to the Domestic Debt Exchange Programme (DDEP), as announced by Dr. Cassiel Ato Baah Forson, the Finance Minister. The minister acknowledged the challenges faced by investors and the public during the DDEP, recognizing the relief it provided to the country's economy, but confirmed that no reimbursement agreements were in place. He emphasized that the government's focus would shift towards promoting growth and job creation as the next phase of economic recovery.
According to Ghana News Agency, Ghana's engagement with the International Monetary Fund (IMF) began with the country's public debt reaching US$63 billion, approximately 88 percent of GDP, by the end of 2022. The government restructured about GHS137 billion in domestic bonds with a participation rate exceeding 95 percent. This debt restructuring involved adjusting maturities and coupons across various holders, including corporate, individual, and pension investors, while the Bank of Ghana absorbed losses to stabilize the financial system.
The restructuring efforts contributed to reducing public debt to 56.6 percent of GDP by the end of 2024. It also achieved a 1.7 percent primary surplus, rebuilt reserves to US$6.7 billion, and lowered inflation to 3.4 percent in April 2026 from a peak of 54.1 percent, as part of the IMF's Extended Credit Facility (ECF) framework. During a joint press briefing in Accra, where the completion of the US$3 billion loan-supported programme was announced, Dr. Forson responded to a question from the Ghana News Agency. He reflected on the difficult period the country endured, describing the 2022 crisis as 'very traumatic for the Ghanaian people.'
Dr. Forson clarified that there was no legal or contractual basis for the State to reimburse investors who incurred losses during the 2022/2023 debt restructuring. He stated, "I do not recall that there is something of the sort that calls on the people of Ghana for the Ghanaian government to give some form of compensation. I do not know the details of an agreement that was signed between those who suffered, unfortunately, loss of investment."
The minister further noted that he was unaware of any clause in the agreements with bondholders that would create such a liability for the state, adding, "so we do not have any certain liability on us based on what was agreed to." However, he assured the public of the government's commitment to maintaining fiscal discipline and using the fiscal space created by the reforms to support growth and job creation for the benefit of the masses.
He also announced plans for a flagship programme, 'the new economy,' which would soon be unveiled. This initiative aims to target sectors with high employment potential and will include non-financial technical assistance from the IMF over a three-year span. Ruben Atoyan, IMF Mission Chief for Ghana, stated that the debt restructuring was essential for stabilizing the Ghanaian economy and setting it on a sustainable path. He highlighted the sharp reduction in public debt following the restructuring and emphasized the importance of maintaining fiscal discipline, building buffers from the gold windfall, and managing State-Owned Enterprise (SOE) and quasi-fiscal risks.
The IMF Africa Department Division Chief also noted that the new Policy Coordination Instrument, replacing the Extended Credit Facility, would prioritize safeguards against contingent liabilities and quasi-fiscal risks in the future.
Source: Ghana News Agency