Accra: The Government has officially ruled out any possibility of compensating bondholders who suffered financial losses under the Domestic Debt Exchange Programme (DDEP), as stated by Dr. Cassiel Ato Forson, the Finance Minister. The decision comes despite acknowledging the challenges faced by investors and the general public during the implementation of the DDEP.
According to Ghana Web, Dr. Forson emphasized that while the DDEP had provided significant relief to the country's economy, there were no existing agreements to reimburse the affected bondholders. He further promised that the government would focus on promoting growth and creating jobs as the next step forward.
Ghana's entry into the International Monetary Fund (IMF) programme was driven by its mounting public debt, which had reached US$63 billion, equivalent to approximately 88 percent of the Gross Domestic Product (GDP) by the end of 2022. As part of the economic restructuring efforts, the country restructured about GHS137 billion in domestic bonds, achieving over 95 percent participation. This restructuring included adjusting the maturities and coupons for corporate, individual, and pension holders, with the Bank of Ghana (BoG) absorbing losses to stabilize the financial system.
The restructuring efforts resulted in a reduction of public debt to 56.6 percent of GDP by the end of 2024, a 1.7 percent primary surplus, rebuilt reserves to US$6.7 billion, and a significant decrease in inflation to 3.4 percent in April 2026, down from a peak of 54.1 percent under the IMF's Extended Credit Facility (ECF) framework.
During a joint press briefing in Accra, Dr. Forson responded to a question posed by the Ghana News Agency regarding the completion of the US$3 billion loan-supported programme. He recalled the challenging period Ghana underwent in 2022, describing it as 'very traumatic for the Ghanaian people.' He clarified that there was no legal or contractual obligation for the State to reimburse investors who had endured losses during the 2022/2023 debt restructuring.
Dr. Forson noted that he was unaware of any clauses in the agreements with bondholders that would impose such a liability on the State. However, he reassured Ghanaians of the government's commitment to maintaining fiscal discipline and utilizing the fiscal space created by the reforms to support growth and job creation for the benefit of the masses.
He also announced the imminent unveiling of a flagship programme called 'The New Economy,' which aims to target sectors with high employment potential. This initiative will receive non-financial technical assistance from the IMF over a span of three years.
Ruben Atoyan, the IMF Mission Chief for Ghana, supported the debt restructuring as a necessary measure to stabilize the Ghanaian economy and set it on a sustainable path. He highlighted the significant reduction in public debt following the restructuring and underscored 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 further explained that the new Policy Coordination Instrument, which will replace the Extended Credit Facility, will prioritize safeguards against contingent liabilities and quasi-fiscal risks in the future.