President Mahama Announces Plan to Reactivate Sinking Fund to Address Pending GHS 15 Billion Domestic Debt Payment
President John Mahama has revealed his administration’s plan to reinstate the Sinking Fund to manage the payment of domestic debts totaling approximately GHS 15 billion and due this year.
The reactivation of the fund will also assist in servicing external debts, providing much-needed financial relief as the government grapples with its fiscal obligations.
The President shared this development during an exclusive interview with Bloomberg, emphasizing the strategic use of the Sinking Fund as a tool for addressing long-term debt repayments.
A Sinking Fund is typically established by an entity to set aside revenue over time, earmarked for settling future capital expenses or long-term debt liabilities.
Speaking further during the Bloomberg interview, President Mahama clarified that his administration has no immediate plans to extend Ghana’s $3 billion Extended Credit Facility (ECF) agreement with the International Monetary Fund (IMF), which was approved in May 2023.
He reiterated the government’s commitment to adhering to the current programme, stating, “We’ve not talked about an extension of the programme. We are determined to continue with this programme. If it’s necessary to look at additional funds or to extend the programme, we’ll look at it, but for now, we are determined to continue on this trajectory.”
The President also provided insights into ongoing discussions with the IMF, which are focused on securing economic stability through key structural reforms. Ghana’s three-year ECF programme is designed to support economic recovery and growth while ensuring fiscal discipline and long-term stability.
The government remains resolute in its commitment to address the country’s economic challenges within the framework of the current ECF agreement.
