By: Kekeli K. Blamey
Ghana’s Finance Minister, Dr. Mohammed Amin Adam, has revealed that the country saved a staggering $12 billion through the successful implementation of the Domestic Debt Exchange Programme (DDEP).
This programme was launched in December 2022 to address Ghana’s financial difficulties and alleviate its debt load, creating a more sustainable fiscal environment.
According to Dr. Amin Adam, the DDEP was a monumental success that laid the groundwork for broader debt restructuring efforts.
The programme required domestic bondholders to exchange their existing bonds for new ones with different terms, reducing the government’s debt service obligations.
Dr. Amin Adam made these remarks during a panel discussion at the 2024 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group, highlighting the difficulties faced by low-income countries in managing debt.
The Finance Minister explained that the benefits derived from the DDEP and subsequent debt restructuring efforts include outright debt cancellation and debt service relief.
He also disclosed that the government is working to restructure about $2.7 billion with its commercial creditors.
This development is a significant milestone for Ghana, demonstrating the effectiveness of the DDEP in addressing the country’s financial challenges.
