Ghana’s domestic debt rose by GH¢57 billion between December 2025 and June 2026, driven largely by increased short-term borrowing as the government turned to the local market following the expiration of restrictions imposed under the Domestic Debt Exchange Programme (DDEP) .
The Bank of Ghana’s July 2026 Monetary Policy Report shows that domestic debt increased from GH¢334.1 billion in December 2025 to GH¢391.1 billion by June 2026, representing approximately 24.5 percent of Gross Domestic Product .
Short-term securities drive increase
Short-term instruments accounted for the largest portion of the increase, rising by GH¢33.4 billion. Medium-term debt grew by GH¢17.2 billion, while long-term debt increased by GH¢6.8 billion .
According to the central bank, short-term bills served as the primary source of financing for government operations until February 2026, when a three-year restriction on new domestic bond issuance expired .
The restriction, imposed in 2023 following Ghana’s debt default, had prevented the government from issuing new bonds and left the country largely shut out of the international capital market .
“Recently, however, this category has grown due to a strong investor appetite for 364-day T-bills,” the Bank of Ghana noted in its report .
The central bank also attributed the medium-term debt increase to cedi depreciation affecting dollar-denominated bonds, alongside tap-ins of existing bonds. Long-term debt rose due to tap-ins of existing long-term bonds and the recapitalisation of the Bank of Ghana .
Composition of domestic debt
Short-term, medium-term and long-term instruments constituted 41.0 percent, 39.1 percent and 19.7 percent, respectively, of the total domestic debt stock .
The surge in short-term borrowing reflects sustained investor demand for government securities, particularly 364-day Treasury bills. Recent auctions have recorded significant oversubscriptions, with investors placing GH¢14.26 billion in bids against a GH¢5.42 billion target at one auction in August 2026 .
Total public debt position
The provisional stock of total public debt increased from GH¢641.1 billion (44.7% of GDP) in December 2025 to GH¢719.5 billion (45.0% of GDP) in June 2026 .
The increase was driven mainly by domestic debt, reflecting the government’s strategy to build buffers for future debt service obligations and support budget financing .
External debt, expressed in cedis, rose minimally during the period due to exchange rate pressures. Although external debt declined in foreign currency terms following principal repayments, cedi depreciation increased the value of obligations when converted to local currency .
In terms of overall composition, domestic and external debt constituted 54.4 percent and 45.6 percent of the total debt stock, respectively .
Debt strategy and future outlook
The Bank of Ghana stated that the increase in domestic debt formed part of efforts to build sufficient buffers in the Sinking Fund to meet large debt service payments expected from maturing bonds in 2027 and 2028 .
With the expiration of DDEP restrictions in March 2026, the government has begun preparing to return to the domestic bond market for medium- and long-term borrowing, with plans to issue GH¢17 billion in domestic bonds in 2026 .
Finance Minister Dr Cassiel Ato Forson announced in July 2026 that Ghana’s debt-to-GDP ratio had declined from 61.8 percent at end-2024 to 45.0 percent by June 2026, achieving the IMF programme target years ahead of schedule .
Despite the rise in nominal debt, the government has emphasised that improved macroeconomic conditions, lower inflation, and strong investor confidence support the current debt management strategy .
