The Ministry of Finance has announced the establishment of two separate sinking fund accounts to help Ghana repay both domestic and external debts falling due between 2026 and 2028, without putting fresh pressure on the national budget.
Finance Minister Dr Cassiel Ato Forson made the disclosure in Parliament on Thursday, July 24, 2025, during the presentation of the 2025 Mid-Year Budget Review.
According to Dr Ato Forson, the government will begin building up reserves in a Cedi Sinking Fund and a US Dollar Sinking Fund from August 2025.
He said the move forms part of long-term plans to improve debt sustainability and rebuild investor confidence.
In August 2025, we will commence the building of cash buffers through a Cedi Sinking Fund and a US Dollar Sinking Fund, Dr Ato Forson said. This structured approach will support the repayment of Ghanas domestic and external debt obligations in a timely and predictable manner.
The Cedi Sinking Fund will be used to repay domestic bonds, especially those issued under the domestic debt exchange programme.
Dr Ato Forson said the government plans to redeem GH¢20 billion in 2026, GH¢50.3 billion in 2027, and GH¢45.75 billion in 2028.
The US Dollar Sinking Fund, on the other hand, will support the redemption of Eurobonds. The projected payouts are US$1.45 billion in 2026, US$1.17 billion in 2027, and US$1.14 billion in 2028.
Dr Ato Forson said the initiative is backed by Sections 37 to 44 of the Public Financial Management Act, 2016 (Act 921), which allows for the creation of such funds to improve fiscal planning and reduce the risk of debt rollover.
This approach will improve investor confidence and help prevent the sort of debt servicing challenges Ghana experienced in the past, he stated.
Dr Ato Forson explained that the pre-funding approach is aimed at avoiding last-minute borrowing or sudden budget cuts, which often disrupt essential public services.
Dr Ato Forson added that the Ministry of Finance will publish quarterly updates on deposits into the sinking funds as part of efforts to keep Parliament and the public informed.