Amin Adam urges monthly disclosure of Sinking Fund as Ghana prepares for DDEP repayments

Former Finance Minister Dr Mohammed Amin Adam has called for monthly disclosure of Ghana’s Sinking Fund activities as the country prepares for major repayments under the Domestic Debt Exchange Programme in 2027 and 2028.

The analysis placed the fund’s balance at GH¢15.6 billion on July 22, 2026, against a year-end projection of GH¢30 billion. The government is expected to face DDEP principal repayments of GH¢58 billion in 2027 and GH¢53 billion in 2028, bringing the total to GH¢111 billion over the two years.

Dr Amin Adam said prefunding the Sinking Fund could help smooth the repayment burden, but cautioned that borrowing to accumulate cash could impose additional costs if the fund earned less than the government paid on the debt used to finance it.

“Prefunding is prudent, but it means part of the 2026 increase in debt may be cash held for future redemptions rather than deficit financing,” he wrote.

He recommended that the government publish the fund’s monthly inflows, including the share derived from the allocation of 7% of non-oil tax revenue and any bond proceeds.

The reports, he said, should also show investments, returns, the proportion of the fund financed through borrowing and planned drawdowns. Such disclosure would help the public assess whether the fund was adequately preparing for the repayment cliff and whether its resources were being managed cost-effectively.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.