ACCRA, July 24 (Xinhua) -- The government of Ghana has instituted measures to meet its external debt service obligation to Eurobond holders by 2028, Finance Minister Cassiel Ato Forson disclosed on Thursday.
While presenting the 2025 mid-year budget review in parliament, Forson said the government has reactivated its U.S. dollar sinking fund to accrue the needed funds for the debt repayments due in 2026, 2027, and 2028.
With the accruals, the minister said the government would be fully prepared to honor its debt obligations of 1.42 billion dollars in 2026, 1.17 billion dollars in 2027, and 1.14 billion dollars in 2028 for Eurobond holders.
Similarly, the Cedi (local currency) Sinking Fund Account will specifically target the redemption of debt service humps of 20 billion cedis (about 1.91 billion U.S. dollars) in 2026, 50.3 billion cedis in 2027, and 45.7 billion cedis in 2028, according to the minister.
"The implementation of the sinking fund will provide a reliable buffer that ensures timely and predictable redemption of designated public debt obligations," Forson said, adding that such a structured approach to debt servicing would boost investor confidence and contribute to long-term debt sustainability.
The West African country inked a memorandum of understanding with its external creditors in January after defaulting on most of its external debts in December 2022.
In June, the credit rating agency Fitch Ratings upgraded Ghana's long-term foreign-currency issuer default rating to "B-," up from "restricted default."
