Ministry of Finance said the payment settled interest on restructured domestic debt.
The Government of Ghana paid GH¢10.0 billion in interest tied to the Domestic Debt Exchange Programme (DDEP), a move the Ministry of Finance announces as settlement to domestic creditors. This matters because large cash outflows for restructured domestic debt affect fiscal cash balances and the liquidity positions of banks, pension funds and insurers that hold government paper.
The DDEP is a mechanism for restructuring domestic-currency sovereign debt by exchanging old instruments for new ones with altered terms such as maturities, coupons or principal adjustments; governments use it to reduce near-term debt-service pressures and to improve fiscal space.
The government statement quotes that the payment totals GH¢10 billion and that recipients include holders of restructured domestic securities, according to the report.
Context on DDEP and domestic creditors
Ghana implements a domestic debt-restructuring process to address high debt-service costs and restore debt sustainability, engaging with stakeholders including domestic banks, pension funds and insurance companies as well as international partners such as the International Monetary Fund (IMF). The Bank of Ghana commonly facilitates settlement and market operations linked to government securities; the Ministry of Finance leads public-debt policy and cash payments.