The Ghana government has ruled out compensation for bondholders who incurred losses under the Domestic Debt Exchange Programme (DDEP), Dr Cassiel Ato Baah Forson, Finance Minister, has said.
The minister acknowledged that the DDEP was difficult for investors and the public, noting the relief it gave the country, but said there were no reimbursement agreements.
It, however, promised growth and job creation as the next step.
Ghana entered the IMF programme with total public debt reaching $63 billion (equivalent to about 88 per cent of GDP) by the close of 2022, restructuring about GH¢137 billion in domestic bonds with over 95 per cent participation.
The debt restructuring involved adjusting maturities and coupons across corporate, individual, and pension holders while the Bank of Ghana (BoG) absorbed losses to stabilise the financial system.
It helped cut public debt to 56.6 per cent of GDP by the end of 2024, achieving a 1.7 per cent primary surplus, rebuilt reserves to $6.7 billion, and reduced inflation to 3.4 per cent in April 2026 from a peak of 54.1 per cent under the IMF ECF framework.
Responding to a question posed by the Ghana News Agency at a joint press briefing in Accra on Friday, announcing the completion of the $3 billion loan-supported programme, Dr Forson recalled the phase the country went through.
He described the 2022 crisis as “very traumatic for the Ghanaian people,” indicating that there were legal or contractual basis for the State to reimburse investors who had haircut during the 2022/2023 debt restructuring.
“I do not recall that there is something of the sort that calls on the people of Ghana for the Ghanaian government to give some form of compensation. I do not know the details of an agreement that was signed between those who suffered, unfortunately, loss of investment,” he said.
The minister added that he was not aware of any clause in the agreements signed with bondholders that would create such a liability for the state, “so we do not have any certain liability on us based on what was agreed to.”
He, however, assured of government’s resolve to maintain fiscal discipline and use the fiscal space created by the reforms to support growth and job creation to benefit the masses.
He announced that a flagship programme called “the new economy” would be unveiled soon, targeting sectors with high employment potential, with non-financial technical assistance from the IMF, spanning three years.
Ruben Atoyan, IMF Mission Chief for Ghana said the debt restructuring was necessary to stabilise the Ghanaian economy and put it on a sustainable path, having helped to create a fiscal space for growth.
He pointed to the sharp drop in public debt after the restructuring, and said the focus was now on maintaining fiscal discipline, building buffers from the gold windfall, and managing SOE and quasi-fiscal risks.
The IMF Africa Department Division Chief said new Policy Coordination Instrument replacing the Extended Credit Facility, would prioritise safeguards against contingent liabilities and quasi-fiscal risks going forward.
Source: GNA
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