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Fitch Ratings has projected a significant increase in Ghana’s debt servicing obligations beginning in 2027 as repayments on bonds issued under the Domestic Debt Exchange Programme (DDEP) start maturing.
According to the agency, Ghana’s debt service costs, excluding short-term debt, are expected to rise to 6.8 percent of GDP in 2027, compared to 4.6 percent recorded in 2025.
Fitch explained that the increase will mainly result from the commencement of amortisation payments on the restructured DDEP bonds.
The agency also noted that Ghana’s second-largest Eurobond issuance, worth approximately $2.9 billion, started repayment earlier this year in January 2026.
Despite the anticipated increase in debt repayments, Fitch maintains that Ghana’s debt profile remains manageable over the medium term due to stronger reserves and improved fiscal buffers.
By the end of 2025, Ghana’s unencumbered international reserves were estimated at $12.3 billion, while central government deposits stood at 2.4 percent of GDP.
Fitch further projected that the country’s reserves would continue to improve, providing additional support for future debt obligations.
The ratings agency also suggested that government may consider buying back portions of the DDEP bonds ahead of their maturity dates as part of efforts to ease repayment pressures.
According to Fitch, the gradual recovery of the domestic bond market could also allow authorities to refinance debt more strategically and better manage future obligations.
Overall, the agency believes that although Ghana’s debt servicing burden is expected to intensify from 2027, rising reserves, stronger liquidity and improved access to financial markets could help cushion the impact and maintain investor confidence in the economy.
Source: citinews
