Govt Moves to Avoid Future Debt Shocks with Structured Eurobond Repayment Plan
Ghanaians could soon be spared the economic turbulence that comes with looming debt deadlines. Finance Minister Dr. Cassiel Ato Forson has assured that the government is building up funds to meet its hefty Eurobond repayments due between 2026 and 2028 — a move aimed at restoring confidence in the economy and shielding businesses from shocks.
Presenting the 2025 mid-year budget review in Parliament, Dr. Forson revealed that a US dollar sinking fund has been reactivated to cover payments of $1.42 billion, $1.17 billion, and $1.14 billion due in the next three years. A similar Cedi sinking fund will tackle domestic debt “humps,” with payments of ₵20 billion in 2026, ₵50.3 billion in 2027, and ₵45.7 billion in 2028.
“This structured approach to debt servicing gives Ghana a reliable buffer,” Dr. Forson explained, “ensuring we meet obligations on time, boost investor confidence, and lay the foundation for a more stable economy.”
For everyday Ghanaians, this means fewer disruptions to the cedi, lower inflationary pressures, and a reduced likelihood of harsh austerity measures. Businesses, particularly importers, manufacturers, and SMEs that rely on credit can expect more predictable borrowing costs and a calmer currency market in the coming years.
Ghana has been rebuilding trust with global investors since defaulting on most of its external debts in December 2022. Progress has been noted: in June, Fitch Ratings upgraded Ghana’s long-term foreign-currency issuer default rating from “restricted default” to B-, citing improved debt management and ongoing reforms.
Economists say that consistently funding debt repayments could also free up resources for vital infrastructure and social spending, which were previously crowded out by debt servicing costs.
“Every cedi we save from panic repayments can go into roads, schools, and businesses,” said a senior finance ministry official. “We are making sure we don’t get caught off guard again.”
For now, the message is clear: Ghana is planning ahead to avoid future debt crises, and to give businesses and households the breathing space they need to thrive.
