Interest payments to average a high 20% of government revenue over next 4 years
According to the US-based firm, the reduction is underpinned by the effects of debt restructuring, the cedi's exchange rate appreciation in 2025 and lower local currency financing costs, as inflation and local interest rates fell to multiyear lows.
Ghana's interest payments are projected to average 20% of government revenue over the coming four years, according to ratings agency S&P Global Ratings. This figure is considerably lower than the historical peak of 48% in 2021. The improvement is attributed to debt restructuring, a stronger Ghanaian cedi, and reduced local currency financing costs due to falling inflation and interest rates.
The cedi, which fell to 16.47 per US$1 in November 2024, is now 43% stronger than its lowest point. Inflation has declined to 3.2% in March 2026, nearing the lowest on record for Ghana, before rising to 5% by August 2026. S&P notes that the cost of servicing Ghana's local currency debt has significantly decreased, with six-month treasury bill interest rates falling to around 6.5% and one-year bills to 10.1%, down from nearly 30% at year-end 2024.
The Ministry of Finance imposed a three-year ban on new medium- or long-term domestic bonds after the domestic debt restructuring in December 2022, but the issuance of longer tenor bonds in 2026 should help extend the maturity profile of Ghana's local currency debt. However, geopolitical tensions in the Middle East could negatively impact these gains by causing inflation and financing costs to rise and putting pressure on the cedi.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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