Fiscal Discipline: Ghana successfully completes a $349.5M Eurobond payment, reduces debt servicing.
In its commitment to fiscal responsibility and economic recovery, Ghana has successfully completed a $349.52 million Eurobond payment, bringing its total debt servicing under the restructured agreement to an impressive $1.17 billion since October 2024. This critical milestone not only signifies Ghana’s dedication to its creditors but also marks a pivotal moment in its journey back to financial stability and investor confidence.
Just a few years ago, Ghana faced daunting economic headwinds, battling a spiraling public debt that threatened to derail its development ambitions. The nation’s Eurobond issuances, once a key avenue for financing infrastructure and economic programs, had become a heavy burden, with debt servicing costs consuming a significant portion of government revenues.
Ghana’s journey to this point has been arduous. Years of borrowing, exacerbated by global shocks like the COVID-19 pandemic and domestic challenges in the financial and energy sectors, pushed the country’s public debt to unsustainable levels. By 2022, the debt-to-GDP ratio had soared to nearly 90%, and debt servicing consumed a staggering 70% of tax revenues. The international financial community, including rating agencies, took note, with S&P downgrading Ghana’s foreign currency debt to “selective default” in December 2022.
Recognizing the urgent need for intervention, the Ghanaian government, under the leadership of its Ministry of Finance and the Bank of Ghana, embarked on a comprehensive debt restructuring program in December 2022. This ambitious undertaking aimed to restore debt sustainability, reduce the debt-to-GDP ratio to below 55% by 2028, and lower the debt service-to-revenue ratio to under 18% from 2028 onwards.
Ghana successfully completed its Eurobond debt exchange, achieving an impressive 98% participation rate from bondholders. Dr. Mohammed Amin Adam, the former Minister for Finance, had earlier expressed the sentiment of the nation at that time, stating, “We have achieved overwhelming success. We obtained more than 98 percent consent which is significantly higher than the 65 percent threshold from bondholders… this impressive result surpasses international benchmarks and demonstrates the strong support of Ghana’s bondholder community.” This critical agreement brought substantial relief, including a 37% reduction in the nominal value of Ghana’s debt (equivalent to a $5 billion reduction) and an estimated $4.3 billion in debt service savings during the IMF program, which is set to expire in 2026. Moreover, the average interest rate on bonded debt was reduced from over 8% to less than 5%.
The October 2024 agreement marked a turning point. It paved the way for Ghana to resume servicing its Eurobond debts, signaling a return to good standing in the international financial community.
The first post-restructuring payment, an initial $475.60 million, was made in October 2024, covering accrued obligations and demonstrating the government’s immediate commitment. This was followed by a $349.52 million payment in January 2025. And now, on the 3rd july , 2025, another $349.52 million has been successfully paid through the Bank of Ghana.
This consistent track record of payments brings Ghana fully up to date on all its scheduled Eurobond debt service obligations for 2025. Cumulatively, since the restructuring in October 2024, Ghana has serviced an impressive $1,174.64 million in Eurobond debt.
