Ex-Finance Minister Asserts Previous NPP Government Met All DDEP Commitments Before Exiting Office

Dr. Mohammed Amin Adam, the former Finance Minister, has responded to recent discussions surrounding the government’s coupon payments to bondholders under the Domestic Debt Exchange Programme (DDEP). He clarified that the previous New Patriotic Party (NPP) government fully met its financial obligations before leaving office, refuting any claims of default.

In a post shared on Facebook on February 18, 2025, Dr. Amin Adam explained that the NPP government had made three significant coupon payments between August 2023 and December 2024. These payments were made through a combination of cash payments and Payment-In-Kind (PIK), showcasing the government’s commitment to settling its debt with bondholders. The former minister specified that a total of GH₵17.25 billion was paid in cash, while GH₵9.77 billion was settled through PIK. This payment strategy ensured that the bondholders were fully compensated in line with the terms of the DDEP.

Dr. Amin Adam also clarified that individuals who had opted not to tender their bonds during the restructuring process were not left out. The government honored its agreement with the Coalition of Individual Bondholders, and these bondholders received GH₵515.17 million as part of the settlement.

In his statement, the former Finance Minister also highlighted the foresight of the NPP government in ensuring that there would be sufficient funds to cover future debt obligations. To support this, the government established buffers in Debt Reserve Accounts, which were specifically designed to facilitate debt service payments, including the fourth coupon payment scheduled for February 18, 2025. These reserve accounts demonstrate the government’s proactive approach to securing the funds necessary for meeting future payments.

Dr. Amin Adam went on to provide a detailed breakdown of the payments made during the previous NPP government’s tenure.

The first coupon payment, made in August 2023, totaled GH₵8.55 billion. This consisted of GH₵5.42 billion in cash and GH₵3.13 billion in PIK.
The second payment, made in February 2024, amounted to GH₵9.11 billion, including GH₵5.85 billion in cash and GH₵3.27 billion in PIK.
The third payment, made in August 2024, was GH₵9.35 billion, with GH₵5.98 billion in cash and GH₵3.38 billion in PIK.

Dr. Amin Adam’s post came as the government announced the successful settlement of the fourth coupon payment, which was valued at GH₵6.081 billion in cash and GH₵3.46 billion in PIK. The payment was made in full, with the funds drawn from the reserve accounts established earlier by the NPP government.

The former Finance Minister’s comments aimed to highlight the NPP government’s dedication to fulfilling its obligations to bondholders and ensuring the country’s financial stability. He emphasized that these payments and the creation of the Debt Reserve Accounts were part of the government’s broader effort to manage the national debt responsibly and avoid defaults.

Dr. Amin Adam also made it clear that the NPP government worked diligently to ensure that the DDEP was managed in a way that would allow the country to continue servicing its debt without disrupting economic growth. By honoring its coupon payments and ensuring future debt obligations were supported, the previous government aimed to provide a stable financial environment for the country.

Dr. Amin Adam’s remarks sought to assure the public and bondholders alike that the NPP administration fulfilled all its debt obligations without default. He also underscored that the government had put in place measures to ensure future debt service obligations would be met, reinforcing the country’s commitment to managing its finances responsibly and sustainably.