Ghana’s recent public debt situation appears to have improved, but the central policy question is whether the debt position and financing system have become durable, transparent, and market based. The recovery has benefited from debt-service relief under the DDEP, external restructuring, IMF programme discipline, expenditure compression, favourable gold prices, and domestic policy measures.
These supports have eased immediate pressure, but they do not by themselves remove refinancing risks. The decisive test is whether Government can meet obligations, finance budget deficits, and extend maturities without accumulating arrears, suppressing investor returns, relying on opaque placements, or weakening the domestic yield curve. Since the DDEP, debt has also been managed through a widening set of tools outside regular competitive auctions: reopenings and possible placements of DDEP bonds, non-cash issuance, payment-in-kind coupons, Sinking Fund prefunding, and a planned liability-management programme.
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