Positive Developments: Ghana's debt-to-GDP ratio improved significantly from 62% to 55%, showing enhanced fiscal sustainability. Inflation dropped dramatically from 22.4% to 13.7%, moving closer to the Bank of Ghana's target range of 8% ± 2%.
Key Changes: While total debt increased by 5.9% to GH₵ 769.4 billion, the improvement in debt-to-GDP ratio indicates economic growth is outpacing debt accumulation. External debt composition remains stable at ~57.5% of total debt.
Market Conditions: Treasury bill rates declined to 13.7%, reflecting improved market confidence, while the monetary policy rate remains at 28% to anchor inflation expectations during the disinflation process.
Domestic vs External Debt Composition • Data as at May 2025 (Source: BOG, MoF)
Explore Ghana's public debt trends, including domestic and external debt components, interest payments, and debt servicing data. Use the filters to customize the view and analyze trends over time.
| Year | Total Public Debt | Domestic Debt | External Debt | Interest Payments | Debt Servicing | % of GDP |
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Key milestones and activities in Ghana's path to debt sustainability
Eurobond Debt Restructured
IMF Extended Credit Facility
Bilateral Debt Restructured
Domestic Debt Exchange Participation
A chronological view of Ghana's debt restructuring activities
Ghana officially announced a domestic debt exchange program (DDEP) as part of conditions to secure an IMF loan. The government suspended payments on most external debt, including Eurobonds and commercial loans.
PolicyGhana defaulted on most of its external debt payments after missing the 30-day grace period for a $41 million interest payment on its Eurobond due in 2026.
FinancialThe initial deadline for the DDEP was extended multiple times due to low participation rates.
PolicyGhana reached an agreement with domestic bondholders on a debt exchange program. The government extended the deadline for its domestic debt exchange, with approximately 85% of eligible bondholders ultimately participating.
NegotiationGhana secured a staff-level agreement with the IMF for a $3 billion Extended Credit Facility.
IMFThe IMF Executive Board approved the $3 billion loan program over three years to help restore macroeconomic stability and debt sustainability.
IMFGhana formed an official committee of bilateral creditors co-chaired by China and France to negotiate restructuring terms.
NegotiationThe government launched restructuring negotiations with its commercial creditors including Eurobond holders.
NegotiationGhana announced it would seek a second IMF review in November after completing the first review successfully.
IMFThe Official Creditor Committee (OCC) provided Ghana with financing assurances, a crucial step in the IMF program.
FinancialGhana reached a deal in principle with official creditors to restructure $5.4 billion of bilateral debt.
AgreementGhana announced a tentative agreement with its bondholders to restructure $13 billion of international bonds.
AgreementGhana completed negotiations with its Eurobond creditors, restructuring approximately $13 billion in external debt with a 37% haircut.
MilestoneThe government completed the second review of the IMF program, with continued implementation of fiscal consolidation measures.
IMFGhana successfully completed the Eurobond restructuring process with creditor participation above 95%, achieving significant debt relief through maturity extensions and NPV reduction.
CompletionGhana initiated preliminary discussions with international investors and rating agencies regarding potential market re-entry in 2025.
StrategyGhana successfully completed the third review of its IMF Extended Credit Facility, unlocking additional funding and demonstrating continued progress in fiscal reforms.
IMFGhana achieved significant improvement in debt-to-GDP ratio, falling to 55% from 62%, marking a critical milestone in debt sustainability targets under the IMF program.
AchievementGhana announced concrete plans for gradual return to international capital markets in Q4 2025, supported by improved macroeconomic indicators and successful debt restructuring outcomes.
PlanningUnderstanding the core components of the restructuring strategy
Extended maturities and lowered interest rates on domestic bonds to create fiscal space and ensure debt sustainability. Successfully completed with 85% participation rate.
Comprehensive restructuring of $13 billion Eurobonds and $5.4 billion bilateral debt, achieving significant NPV reduction and maturity extensions to restore debt sustainability.
$3 billion Extended Credit Facility program with comprehensive policy reforms, including fiscal consolidation and structural changes to restore macroeconomic stability.
Implementation of comprehensive revenue enhancement and expenditure rationalization measures, including tax reforms and improved public financial management.
Strengthening banking sector regulations, improving supervision frameworks, and addressing vulnerabilities to create a more resilient financial system.
Comprehensive planning for gradual return to international capital markets, supported by improved credit ratings and restored investor confidence.
Prospects for Ghana's financial future after restructuring
Ghana's comprehensive debt restructuring efforts have yielded significant positive results by mid-2025. The successful completion of both domestic and external debt restructuring has restored debt sustainability, with the debt-to-GDP ratio improving dramatically from 88% to 55%.
The ongoing IMF program has provided crucial support for macroeconomic stabilization, with inflation declining from over 50% to 13.7% and foreign exchange reserves gradually rebuilding. The successful implementation of fiscal reforms has enhanced revenue collection and improved public financial management.
With the completion of major restructuring milestones, Ghana is now positioned for a gradual return to international capital markets in late 2025, marking a significant achievement in the country's economic recovery journey. Continued adherence to fiscal discipline and structural reforms will be essential for maintaining this positive trajectory.