Finance Minister warns of massive debt obligations over the next 4 years

The Minister of Finance, Dr Cassiel Ato Forson, has revealed that Ghana faces significant domestic and external debt service obligations over the next four years due to the Domestic Debt Exchange Programme, posing serious risks to the country’s fiscal sustainability and economic stability.

Presenting the 2025 Financial Budget to Parliament, he disclosed that domestic debt service obligations would total approximately GH¢153 billion, representing 11.6 per cent of GDP, while external debt service would amount to $8.7 billion, equivalent to 10.9 per cent of GDP.

He noted that a large portion, 73.3 per cent; of these payments would be due in 2027 and 2028.

"Ghana faces significant external debt service obligations for the next four years. The next four years will require the country to pay $8.7 billion, representing 10.9 per cent of GDP, with heavy concentration again in the years 2027 and 2028," he stated.

Dr Forson raised concerns about the debt restructuring undertaken by the previous administration, suggesting that it was designed to shift the bulk of debt repayments to 2027 and 2028. "I don’t know how we sat and allowed that design," he questioned.

He further explained that Ghana's debt service obligations for the 2025 financial year were equally burdensome, with significant payments due in February (GH¢9.9 billion), July (GH¢6.2 billion), and August (GH¢10.1 billion).

Dr Forson highlighted that the fiscal challenges were exacerbated by substantial short-term treasury bill maturities inherited by the current government.

"Currently, the government’s options for financing the budget are limited to only the treasury bill market following the debt restructuring programme," he added.