File photo of the Minister of Finance, Dr Cassiel Ato Forson
The Minister of Finance, Dr. Cassiel Ato Forson, has attributed the drop in Ghana’s debt-to-GDP ratio to the debt restructuring exercise in 2024 on the 37 percent Eurobond principal haircut, rather than the economic policies instituted by the erstwhile Akufo-Addo government.
Speaking on The Point of View on Channel One TV on Wednesday, March 12, 2025, the finance minister explained that the drop in Ghana’s debt burden was largely due to the government writing off 37% of Eurobond principal owed to investors.
“Debt-to-GDP has only come down not because of what the previous government has done, but because last year, the government gave Eurobond holders 37% principal haircuts.
“I don’t know whether they are celebrating the haircut they gave to investors,” Ato Forson said.
Additionally, the accumulated interest on these bonds was slashed by another 37%, significantly lowering the country’s debt obligations.
Ghana reached a debt restructuring agreement with its Eurobond holders, resulting in a 37% haircut on the principal of $13 billion of its debt, a significant milestone in the country’s economic recovery efforts.
The agreement resulted in a 37% reduction in the nominal value of Ghana’s debt, equivalent to a US$5 billion reduction.
He added that Ghana’s economic performance had exceeded expectations despite prevailing global financial challenges.
SP/AE
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