Ghana public debt falls from GH¢726.7b to GH¢630.2b in October 2025 -Minister

The Minister of Finance, Dr Ato Forson has told Parliament available provisional data shows that the country’s total public debt has declined from GH¢726.7 billion (61.8 percent of GDP) at the end of December 2024 to GH¢630.2 billion by the end of October 2025.

Presenting the 2026 budget, Dr Forson said the public debt has fallen sharply since January 2025, because the government’s debt management strategy is working and fiscal consolidation is delivering results. 

“This represents one of the steepest improvements in our debt metrics in recent history. This turnaround reflects disciplined fiscal management, prudent borrowing, effective liability operations, and a strong performance of the Ghana cedi.

For the first time in over a decade, the rate of debt accumulation has turned negative, falling from a positive 19.1 percent in 2024 to a negative 13.3 percent by October 2025. It is a powerful signal that Ghana’s public finances are on a sustainable path once again,” he said.

He noted that external debt declined by GH¢97.6 billion (23.4 percent), from  GH¢416.8 billion in December 2024 to GH¢319.2 billion in October 2025, driven  by cedi appreciation, fiscal discipline, and reduced external borrowing. 

However, he said domestic debt, on the other hand, rose only modestly, from GH¢309.8 billion to GH¢311.0 billion, reflecting controlled domestic financing to support the 2025 Budget.

“As a result, the debt mix has improved significantly, with domestic debt now representing 49.4 percent of total public debt, up from 42.6 percent.  This shift underscores Government’s commitment to deepening local

On debt restructuring, the Minister said the country’s comprehensive debt restructuring is firmly on track.

“On October 13, 2025, the Memorandum of Understanding with Official Bilateral Creditors became effective, following the completion of all conditions precedent. Bilateral agreements have already been signed with China, Finland, France, Germany, Spain, and the United Kingdom, with the remaining countries expected to finalise theirs by December 2025,” he said.

He also stated that the government has reached Agreements in Principle (AIPs) with several major lenders on commercial debts.

The Official Creditor Committee (OCC) has confirmed that these AIPs meet the Comparability of Treatment principle, paving the way for broader participation, he said, adding that negotiations continue with remaining creditors to conclude the process, ensuring Ghana’s debt profile remains equitable and sustainable. 

Dr Forson indicated that the domestic debt market has staged a strong comeback on the back of macroeconomic stability and renewed investor confidence. 

“By October 2025, total issuance reached GH¢234.0 billion, with GH¢229.6 billion coming from Treasury bills. Importantly, government honoured all coupon payments under the Domestic Debt Exchange Programme, amounting to GH¢20.3 billion, of which GH¢16.8 billion was paid in cash and GH¢3.6 billion in kind,” he said. 

He added that the government is current on all debt service payments to non-tendered bondholders. 

“These timely payments have reinforced credibility, restored trust, and revitalised participation in the domestic market,” he said.

The Minister told Parliament that borrowing costs have fallen dramatically across all maturities: Indicating the following, he said the 91-day Treasury Bill rate declined from 28.04 percent in December 2024  to 10.67 percent in October 2025, describing it as a historic 1,736 basis point reduction, the  lowest in nearly 14 years. 

He said the 182-day rate fell from 28.68 percent to 12.47 percent, down by 1,622 basis points; and the 364-day rate dropped from 30.07 percent to 12.88 percent, a 1,719 basis point decline. 

“This average decline of 1,692 basis points represents a remarkable easing of credit conditions. It lowers the cost of government financing, improves private sector access to credit, and creates fiscal space for productive, growth-oriented investment,” he said.

On the Eurobonds, he said: “Ghana’s story is also resonating globally. Our Eurobond prices have risen by 17 percent year-to-date, while yields have fallen by over 300,” he said.

By Emmanuel K Dogbevi

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