NPP did not build debt buffer; only GHS 155 million was left in Debt Service Reserve account – Kwakye Ofosu

Minister of Government Communications, Felix Kwakye Ofosu has refuted claims by the erstwhile NPP administration that they had built debt buffers to aid in the 4th DDEP coupon payments.

Former Finance Minister, Mohammed Amin Adam in a Facebook post on February 17 claimed that the erstwhile Akufo-Addo government built buffers in the Debt Service Reserves Accounts to support upcoming debt service obligations such as the 4th coupon payments which was honoured by the current government.

His comment came after government had announced on February 17 that the finance minister has successfully settled the 4th Domestic Debt Exchange Programme (DDEP) coupon payments to DDEP bondholders.

However, at a press conference on February 19, 2025 at the Jubilee House, Felix Kwakye Ofosu explained that the balance in the Debt Service Reserve Account at the time the NDC took office was GHS 155,463,435 million.

He argued that this could not have settled the GHS6.081 billion 4th coupon payment to all DDEP bondholders as the NPP asserts.

“You will find also that when the NDC took over on 7th January 2025, the last time anything had happened in that account when the NPP left office was January 2, 2025. The amount of money in the account on that date was GHS155,463,435 bear in mind that we are talking about payments in excess of GHS 6 billion.

“In addition to that, another GHS 9 billion is actually sitting in the fund as we speak to pay for maturing coupons in July and August. If you put it together that is GHS 15 billion yet the balance when the NPP was leaving was GHS155 million.

“So how could they possibly say that they were the ones who built the buffer, what kind of buffer is there if you have obligations amounting to GHS15 billion,” he stated.

According to him, the GHS9.7 billion deposited into the Debt Service Recovery Cedi Account (Sinking Fund) as a buffer for the 5th DDEP coupon in addition to the GHS6.081 billion used to settle 4th coupon payment far exceeds the balance in the Debt Recovery account left by the NPP administration.

“As I speak to you, as of yesterday, 18th February 2025, the balance in the account was GHS 9,270,537,727.67 and this balance is there as a buffer against debt service obligations in July and August this year.

“So it is clear by available facts and evidences that the claim by members of the NPP administration that we are able to honour these obligations because of buffers they built is completely untrue,” he added.

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The post NPP did not build debt buffer; only GHS 155 million was left in Debt Service Reserve account – Kwakye Ofosu first appeared on 3News.

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