Dr. Casiel Ato Forson
Ghana’s Public debt has reduced from GH¢726.7 billion as at the end of December 2024 to GH¢613 billion as at June 2025, says Finance Minister, Dr. Casiel Ato Forson.
Dr. Forson who announced this when he presented the 2025 Mid-Year Budget Review to Parliament yesterday said the figure marks a significant debt reduction of GH¢113.7 billion in the last six months.
“For the first time in Ghana’s history, there is a negative 15.6% rate of debt accumulation. Ghana’s public debt as a percent of GDP reduced by 18% in six months,” he said.
“Ghana’s foreign debt, as a percentage of total public debt, declined from 57.4% as at end-December 2024 to 49% by end-June 2025. This has significantly improved Ghana’s debt sustainability,” he stated.
He also mentioned that the launch of an audit of arrears by the Ghana Audit Service in partnership with EY and PWC has so far completed 87% of GH¢68.7 billion of arrears with a total of GH¢28.3 billion validated for payment.
According to the Finance Minister an amount of GH¢3.6 billion has been rejected due to errors, duplications, and non-compliance with Public Financial Management (PFM) and Procurements Rules. An amount of GH¢562.6 million is without adequate supporting documents while GH¢27.3 billion is pending validation.
“Our commitment to fiscal discipline, prudent debt management and exchange rate appreciation has resulted in significant improvement in Ghana’s debt profile, the audit is expected to be completed by end August 2025,” he added.
He also stated that, the Ministry of Finance will commence the building of cash buffers to support the repayment of Ghana’s domestic debt service obligations relating to the Domestic Debt Exchange Programme, bonds which will fall due in 2027 and 2028 at the beginning August 2025.
“The Cedi Sinking Fund Account will specifically target the redemption of debt service humps in 2026 of GH¢20billion, 2027 of GH¢50.3billion and 2028 of GH¢45.75billion. Similarly, the US Dollar Sinking Fund Account will also target Eurobond redemptions which will fall due from 2026 of US$1.42 billion, 2027 of US$1.17 billion, and 2028 of US$1.14 billion,” he noted.
By Ebenezer K. Amponsah