As a result of the bilateral creditor debt restructuring, which formed part of the overall Debt Exchange Programme undertaken by the previous administration, an estimated US$3 billion in loans was not disbursed to the Akufo-Addo government.
The bilateral partners withheld the funds because the final agreement to be reached would impact both existing and new loans.
This funding gap led to an estimated US$300 million in outstanding interim payment certificates (IPCs) to contractors working on 55 major infrastructure projects.
Consequently, key national development projects such as the Effia Nkwanta Regional Hospital, Kejetia Market Phase 2, the Bolgatanga-Bawku-Pulimakom road project, and the Tema-Aflao road project were brought to a standstill.

Impact on infrastructure projects
Finance Minister Dr. Cassiel Ato Forson, during the presentation of the 2025 Budget Statement and Economic Policy in Parliament, revealed that the delay in payments and demobilisation from project sites could result in cost overruns of about US$1.1 billion.
Adding to the complexity, the International Monetary Fund (IMF) supported Programme has placed an annual disbursement ceiling of US$250 million on official bilateral loans.
Dr. Forson explained that under these constraints, it would take at least 12 years from the recommencement of disbursements to complete the 55 stalled projects.
Ghana, however, achieved a milestone in its debt restructuring efforts by signing a Memorandum of Understanding (MoU) with its Official Creditor Committee (OCC).
This agreement marks a crucial step towards stabilizing the nation’s financial standing and restoring long-term debt sustainability.

Massive $12bn debt relief secured
The agreement secured a total debt relief of approximately $12 billion.
The external component includes $2.8 billion in relief from official creditors, a $4.7 billion Eurobond cancellation, and $4.4 billion in cash flow relief over the duration of Ghana’s IMF-supported programme.
These elements collectively amount to $11.9 billion in external debt relief.
In addition to external debt relief, Ghana’s domestic debt restructuring efforts have yielded GH₵61 billion in savings, further supporting economic recovery.

DDEP yields significant savings
On the domestic front, Ghana has restructured a total of GH₵203 billion under the Domestic Debt Exchange Programme (DDEP), achieving an impressive participation rate of nearly 95%.

Key outcomes of debt restructuring
Key outcomes of the initiative include a reduction in coupon rates from an average of 21% to 9%, along with an extension of debt maturities.
This has significantly eased Ghana’s near-term debt service burden, which previously consumed over 40% of the country’s tax revenues.
Projections indicate that Ghana’s domestic debt-to-GDP ratio will decline to 55% by the end of 2028, positioning the country on a more sustainable fiscal path.

A step towards economic stability
With this landmark agreement, Ghana is on track to restoring debt sustainability and reinforcing its economic recovery.
While challenges remain, the substantial debt relief provides the government with an opportunity to focus on growth-oriented policies and sustainable fiscal management
By ELVIS DARKO, Accra