Ghana Clears $700m Eurobond Debt Ahead of Schedule to Boost Investor Trust
- Ghana's Ministry of Finance settled its full $700 million Eurobond obligation last Thursday, comprising $525.2 million in principal and $174.8 million in interest
- The payment brought total disbursements to Eurobond holders since January last year to $2.1 billion, financed without drawing on foreign exchange reserves
- The government introduced two new sinking funds to cushion Eurobond maturities scheduled between 2026 and 2028
Ghana's Ministry of Finance has fully cleared its $700 million Eurobond obligation for the year before the deadline, with the transaction completed last Thursday.
The settlement was split into $525.2 million in principal repayments and $174.8 million in interest payments. With this disbursement, total payments made to Eurobond holders since January last year have reached $2.1 billion.
Source: Twitter
According a report sighted on Graphic Online, the government financed the repayment through structured arrangements that kept pressure off the country's foreign exchange reserves.
Officials say the early settlement is intended to shrink Ghana's outstanding external debt, shore up investor confidence, and support broader macroeconomic stability.
Finance Minister Dr Cassiel Ato Forson said the ministry would maintain sound public financial management practices to ensure Ghana continues to honour its debt obligations on time.
Ghana's debt restructuring and IMF bailout
The repayment follows a period of significant debt restructuring under both the Eurobond and Domestic Debt Exchange Programmes.
Those restructurings were compulsory conditions for Ghana to access a $3 billion economic bailout from the International Monetary Fund, which became necessary after public debt surpassed 85 per cent of GDP.
To protect against future payment shortfalls, the government has established two new financial buffers: a Cedi Sinking Fund and a US Dollar Sinking Fund.
Both instruments are designed to cover Eurobond maturities falling due between 2026 and 2028, providing a cushion as Ghana continues its path toward debt sustainability.
Ghana exits IMF programme
Meanwhile, YEN.com.gh reported earlier that Ghana had officially exited its IMF bailout programme following the successful completion of its Extended Credit Facility arrangement.
The government said the early conclusion reflects restored macroeconomic stability and progress towards debt sustainability.
Authorities added that key indicators, including inflation, currency strength and economic growth, have shown marked improvement.
Source: YEN.com.gh
