DDEP coupon payments hit GH¢56bn after 6th settlement                                           

By Joshua Worlasi AMLANU, [email protected]

Government has now paid more than GH¢56billion in coupon obligations under the Domestic Debt Exchange Programme (DDEP), following the latest GH¢10billion interest settlement this week.

The February 2026 payment marks the sixth coupon disbursement since domestic debt restructuring was rolled out in late 2022. It is also the first time government has fully settled a DDEP coupon entirely in cash, without any Payment-In-Kind (PIK) component.

In a statement issued in Accra, the Ministry of Finance said the GH¢10billion payment reflects “strengthened fiscal capacity and solvency” and underscores the authorities’ commitment to meeting all obligations under the programme.

“This payment marks the sixth coupon settlement under the programme and represents the second full cash payment without any Payment-In-Kind component, reflecting strengthened fiscal capacity and solvency,” the ministry said.

The DDEP was introduced as part of government’s effort to address unsustainable public debt levels and secure support under an IMF-backed stabilisation programme. The initiative involved exchanging short-term domestic securities for longer-tenor bonds with revised coupon structures, easing immediate debt servicing pressures while extending maturities.

Coupon payments under the programme have been scheduled semi-annually since August 2023. They have typically combined Payment-In-Cash (PIC) components – transferred directly to bondholders – and PIK portions credited as additional securities to investors’ Central Securities Depository accounts.

The inaugural coupon payment in August 2023 totalled GH¢8.55billion, comprising                       GH¢5.42billion cash and GH¢3.13billion in PIK. The February 2024 settlement rose to           GH¢9.11billion, split between GH¢5.85billion of PIC and GH¢3.27billion in PIK.

By August 2024 the third coupon payment reached GH¢9.35billion, with GH¢5.98billion paid in cash and GH¢3.38 billion issued as PIK instruments. The fourth coupon in February 2025 totalled GH¢9.54billion, including GH¢6.08billion cash and GH¢3.46 billion in PIK.

In August 2025, government paid GH¢9.7billion – bringing total disbursements for 2025 alone to GH¢19.4billion. The latest GH¢10billion payment in February 2026 brings cumulative coupon settlements under the programme to more than GH¢56billion.

Officials said the shift toward full cash payments signals improving liquidity conditions and stronger fiscal buffers compared with the restructuring’s early phase, when macroeconomic pressures including high inflation and currency volatility constrained public finances.

“The timely payment sends a strong positive signal to domestic and international investors, reinforces market confidence and is expected to support Ghana’s credit outlook while enhancing stability within the financial sector, including banks and pension funds,” the ministry said.

Domestic banks, pension funds and asset managers hold significant volumes of restructured government bonds. Regular and predictable coupon servicing is therefore critical to restoring balance sheet stability and rebuilding liquidity in the local bond market after the 2023 restructuring.

The ministry linked this latest settlement to improving macroeconomic fundamentals, including declining inflation, easing interest rates and relative stability of the cedi. Authorities also cited stronger fiscal buffers and ongoing consolidation measures aimed at restoring debt sustainability over the medium-term.

“Government remains fully committed to meeting future DDEP obligations, supported by strong buffers, improving macroeconomic fundamentals, declining inflation, lower interest rates and a stable cedi,” the statement added.

The cumulative GH¢56billion in payments reflects the scale of government’s domestic debt servicing effort since the exchange programme began. While the DDEP reduced immediate rollover risks and extended maturities, sustained cash payments are viewed as essential to rebuilding investor confidence and narrowing risk premiums on government securities.

The latest full cash settlement is expected to further strengthen sentiment and liquidity in the domestic capital market as government continues its fiscal adjustment and economic recovery under the IMF-supported programme, expected to end May 2026.

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