Omanghana
The Ministry of Finance has officially reopened Ghana’s domestic bond market as of March 2, 2026, ending a three-year suspension on new bond issuances. The freeze was introduced in 2023 after the country’s 2022 debt default and the rollout of the Domestic Debt Exchange Programme (DDEP), which restructured existing obligations.
The reopening allows the government to move away from heavy reliance on short-term Treasury bills and resume issuing longer-dated domestic bonds. This shift is expected to improve debt management by spreading repayment obligations over a longer period rather than concentrating them in the short term.
Finance Minister Cassiel Ato Forson said the decision was driven by what he described as a strong macroeconomic environment. According to him, declining inflation, relative currency stability, and improved investor confidence have created favorable conditions for Ghana’s return to the domestic bond market.
The government also emphasized that it has honored all coupon payments and obligations under the restructured bonds since 2025. Officials say this consistent performance has helped restore fiscal credibility and rebuild trust among investors.
Market indicators suggest a significant improvement in borrowing conditions. Treasury bill rates have dropped sharply from a crisis peak of 28.9 percent to about 10.7 percent, marking the lowest level in 14 years. Analysts believe the reopening of the bond market will help establish a transparent yield curve, which is essential for accurately pricing government securities and guiding broader financial market activity.
The resumption of benchmark bond issuance forms part of Ghana’s 2025–2028 Medium-Term Debt Management Strategy, which is aligned with the country’s ongoing program under the International Monetary Fund’s Extended Credit Facility.
However, the development has not been without criticism. Some opposition voices have warned that returning to the bond market could lead to a repeat of the borrowing patterns that contributed to the 2022 debt crisis. While the reopening is widely viewed as a milestone in Ghana’s economic recovery, observers say disciplined fiscal management will be crucial to avoid past mistakes.
Source: Omanghana
