The Minister of Finance, Dr Cassiel Ato Forson, has disclosed that the government has accumulated GH¢15.6 billion in the Sinking Fund Cedi Account as part of measures to settle Domestic Debt Exchange Programme (DDEP) obligations for this year.
Presenting the 2026 Mid-Year Fiscal Policy Review and Budget Statement in Parliament, Dr Forson said the amount, deposited as of last Wednesday, formed part of a broader strategy to retire DDEP bonds worth GH¢58 billion and GH¢53 billion falling due in 2027 and 2028 respectively, totalling GH¢111 billion for the two years.
He said the government was on course to grow the fund to GH¢30 billion by the end of the year, an amount, he noted, would be sufficient to redeem the GH¢30 billion in DDEP debt maturing in February 2027.
“This will be enough to repay the GH¢30 billion DDEP debt that will fall due in February 2027,” he stated.
Rebuilding war chest
Dr Forson explained that under the 2026–2029 Medium-Term Debt Strategy, the government committed seven per cent of non-oil tax revenues, together with proceeds from any domestic bond issuances, into the Sinking Fund to build what he described as a “war chest” to redeem the 2027 and 2028 maturities.
He then criticised the design of the DDEP, which was introduced under the former New Patriotic Party (NPP) administration, describing it as poorly structured and one that failed to resolve the country’s debt challenges.
He said the programme, rather than addressing the country’s underlying debt problems, merely deferred them “deliberately, knowingly and cynically”.
“Its architects decided to mortgage tomorrow to survive today.”
Dr Forson added: “Mr Speaker, they had the duty to fix the roof; instead, they moved the roof to another room and declared the house repaired.”
“Meeting obligations of this magnitude requires advanced planning, not last-minute scrambling”.
The Finance Minister said the current scale of obligations falling due was proof of the recklessness of the previous administration.
Proactive measures, reforms
The Finance Minister said building the Sinking Fund was a deliberate departure from the practice of scrambling to meet obligations only when they fell due, describing the initiative as an important signal to investors, credit rating agencies and the Ghanaian public that the government was committed to disciplined fiscal management and honouring its debt obligations.
To further strengthen the framework governing the fund, Dr Forson announced that the government was in the process of amending the Sinking Fund provisions of the Public Financial Management Act, alongside the development of new Sinking Fund Regulations.
He said the reforms were aimed at improving governance, transparency, accountability and reporting on the fund’s operations.
“Three years ago, Ghana was locked out of the international capital markets. Today, our credit ratings are improving, our Eurobond yields have fallen by about 300 basis points since January 2025, and investors are once again looking to Ghana with confidence, but we have told them we are not in a rush,” the Finance Minister stated.
Socioeconomic reforms
Dr Forson outlined a series of economic and social sector reforms aimed at sustaining the country’s recovery and improving livelihoods.
He mentioned the new COCOBOD Bill which would guarantee farmers at least 70 per cent of the free-on-board (FOB) price and require that no less than 50 per cent of the country’s cocoa beans be processed locally.
Dr Forson also touched on the $300 million World Bank-supported programme to eliminate the double-track system in secondary schools, progress towards operationalising the Women’s Development Bank, expanded free primary health care, and investments in agricultural mechanisation, oil palm development and farmer service centres.
“Our responsibility now is not merely to celebrate these gains but to preserve them for future generations. Economic stability is not an event. It is a duty renewed every day through prudent stewardship, fiscal discipline and unwavering accountability. Ghana is not going back,” he stated.
