The Minister of Finance, Dr. Cassiel Ato Forson has revealed that Ghana’s domestic debt service obligations over the next four years will amount to Ghc150.3 billion, representing 11.6% of the country’s Gross Domestic Product (GDP).
The announcement came during his presentation of the 2025 Budget Statement in Parliament, where he outlined the significant fiscal challenges facing the nation.
Dr. Ato Forson disclosed that 73.3% of the Ghc150.3 billion debt service obligation is concentrated in 2027 and 2028, with Ghc57.6 billion due in 2027 and Ghc52.5 billion in 2028.
He described these obligations as “cancerous” and a major risk to Ghana’s economy but assured the nation that the government is committed to addressing the issue.
“These are the debts that will be due for payment beginning now till the next four years, will be Ghc150.3 billion. This represents 11.6% of GDP in domestic debt service obligation alone. Of this, Ghc150.3 billion, 73.3% of this is due for payment in 2027 and 2028.
“In 2027 alone, the domestic service that will be due will be GHc57.6 billion. And in 2028, will we be called upon to pay Ghc52.5 billion. The debt service obligation of 2027 and 2028 is a major harm and these harms are cancerous and pose significant risks to the economy of Ghana. But Mr Speaker, we shall fix it,” he stated.
The Finance Minister also highlighted the immediate fiscal pressures, noting that the debt service obligations for the current financial year are equally burdensome. In February 2025, the government paid Ghc9.9 billion, with additional payments of Ghc6.2 billion due in July and Ghc10.1 billion in August.
Dr. Ato Forson further explained that the fiscal challenges are exacerbated by significant short-term budget obligations inherited by the current administration. These obligations, totaling approximately Ghc111.1 billion, require frequent rollovers, putting additional strain on the country’s cash flows.
“Our debt service obligation for this financial year is equally burdensome with significant harms. In February, we were called upon to pay Ghc9.9 billion. In July we will be paying Ghc6.2billion and in August we will be paying Ghc10.1billion.
“The fiscal challenges are further compounded by the significant short-term budget that we also inherited. These obligations are totally about 111.1 billion, require rollover week in and week out, putting additional pressure on cash flows,” he stated.
