During the presentation of the 2026 Statement of Budget and Economic Policy, Finance Minister Cassiel Ato Forson reported a significant turnaround in Ghana’s public debt metrics, asserting that the country’s fiscal consolidation and debt management strategies are yielding results.
Provisional data presented by the minister indicated that total public debt declined from GH¢726.7 billion (61.8 per cent of GDP) at the end of December 2024 to GH¢630.2 billion (45.0 per cent of GDP) by the end of October 2025.
This represents one of the steepest improvements in the nation’s debt metrics in recent history. Furthermore, the rate of debt accumulation turned negative, moving from a positive 19.1 per cent in 2024 to a negative 13.3 per cent by October 2025.
According to the Ministry of Finance, the reduction was attributed to disciplined fiscal management, effective liability operations, and the appreciation of the Ghana cedi. The composition of the debt also saw a shift: external debt dropped by GH¢97.6 billion (23.4 per cent) to GH¢319.2 billion, while domestic debt rose modestly to GH¢311.0 billion. This change increased the domestic debt share of the total public debt from 42.6 per cent to 49.4 per cent, a shift the government intends to utilise to deepen local financial markets.
The minister also provided an update on the comprehensive debt restructuring programme. The Memorandum of Understanding (MoU) with Official Bilateral Creditors became effective on October 13, 2025, and bilateral agreements have been signed with key nations including China, France, Germany, and the United Kingdom.
On the commercial front, the government has reached Agreements in Principle (AIPs) with several major lenders, which have been confirmed by the Official Creditor Committee (OCC) to meet the Comparability of Treatment principle.
Improvements were also noted in the domestic debt market. Yields on government securities declined dramatically, easing borrowing costs. The 91-day Treasury Bill rate dropped from 28.04 per cent in December 2024 to 10.67 per cent in October 2025—the lowest rate in nearly 14 years. Globally, Eurobond prices have reportedly risen by 17 per cent year-to-date, signalling renewed investor confidence in the economy.
Dr Forson said that the combination of fiscal reforms and effective debt management has “shifted [Ghana’s] debt trajectory decisively toward sustainability.”
