Finance Minister Dr. Ato Forson has credited the decline in Ghana’s debt-to-GDP ratio to debt restructuring efforts, particularly last year’s 37% Eurobond principal haircut, rather than the economic policies of the previous government.

Speaking on The Point of View on Channel One TV on Wednesday, March 12, 2025, Dr. Forson explained that the drop in Ghana’s debt burden was largely due to the government writing off 37% of Eurobond principal owed to investors.

Additionally, accumulated interest on these bonds was slashed by another 37%, significantly lowering the country’s debt obligations.

“Debt-to-GDP has only come down not because of what the previous government has done, but because last year the government gave Eurobond holders 37% principal haircuts,” Dr. Forson stated.

“I don’t know whether they are celebrating the haircut they gave to investors,” Ato Forson said.

Ghana reached a debt restructuring agreement with Eurobond holders, resulting in a 37% haircut on the principal of $13 billion of its debt, a significant milestone in the country’s economic recovery efforts.

The agreement resulted in a 37% reduction in the nominal value of Ghana’s debt, equivalent to a US$5 billion reduction.

Speaking during the presentation of the 2025 Budget Statement in Parliament on Tuesday, 11th March, Dr. Ato Forson highlighted the progress made in managing the country’s debt burden.

“The debt-to-GDP ratio reduced drastically in 2024, reflecting our commitment to restoring macroeconomic stability and ensuring a sustainable debt trajectory,” he said.

He further noted that Ghana’s economic performance had exceeded expectations despite prevailing global financial challenges.