Accra, Ghana – The Minister in charge of Government Communication, Felix Kwakye Ofosu, has refuted claims by members of the NPP administration that payments to bondholders under the Domestic Debt Exchange Programme (DDEP) were made possible due to financial buffers built by the previous government.
According to him, the government’s efforts and strategic financial management generated the revenue required for these payments, dismissing any credit attributed to the NPP.
This was detailed in a press release dated February 17.
Felix Kwakye Ofosu explained that approximately 6 billion Ghana cedis had been paid to bondholders, clarifying that this payment had no connection to the previous administration.
“Two days ago, I issued a statement in which I conveyed news of a directive from President Mahama to the Ministry of Finance to take steps to settle maturing coupons of Ghanaian bondholders who suffered drastic haircuts under the Domestic Debt Exchange Program. So, on Tuesday 17th February, an amount of 6 billion Ghana Cedis or so was paid to these bondholders,” he said.
He further addressed rebuttals from the NPP, who claimed that the payments were only possible due to financial buffers left by their government.
“Now, subsequent to the announcement of this payment and the announcement that the Sinking Fund has been re-activated, we have had some rebuttals from the NPP whose officials have claimed that we have been able to do that as a government only because they left some buffers and that it is not because of any specific intervention from President Mahama,” he stated.
He challenged the NPP to provide evidence of the supposed buffers.
“I wish to place on record that this narrative is untrue. For officials of the former government to be able to see that these payments and unwaiving of these obligations have been the outcome of work that they did, they need to point specifically where those buffers were located.”
Kwakye Ofosu emphasized that the Sinking Fund, also known as the Debt Service Reserve Account, played a crucial role in facilitating these payments.
“Because in order to be able to pay the money, you need to find it and lodge it somewhere. That is what you call a buffer, pending payment at a given date. Now, what we call the Sinking Fund, for short, is actually known as the Debt Service Reserve Account.”
He elaborated on the structure of the account, explaining that it consists of both a cedi-denominated and a dollar-denominated component.
“That is where money is kept pending the payment of bondholders and other creditors. Now, this Debt Service Reserve Account has a Cedi component and a dollar component. In other words, there are two accounts, one denominated in Cedis, the other denominated in dollars.”
He challenged the NPP’s claims by referencing the account’s transaction history, stating that if the previous government had left buffers, it should be reflected in the financial statements.
“So because it is an account, it is possible to obtain a statement of account which shows you transactions over a certain period. So if the NPP officials are saying that we are able to pay these monies because they left money in the Sinking Fund, it should reflect when you take a cursory look at the statement of account. I have the statement of account before me.”
Kwakye Ofosu provided specific details, revealing that under the NPP, the last recorded transaction in the dollar-denominated Debt Service Reserve Account occurred on October 22, 2024, with a balance of only $64,387—an amount far below the 6 billion cedis required for bondholder payments.
“Now, if you check the balance in the account as of 22nd October 2024, it was $64,387. We are talking about payments within the range of 6 billion Ghana Cedis. And you and I know that $64,000 cannot amount to 6 billion Ghana Cedis.”
He disclosed that on January 31, 2025, the NDC administration deposited $96,915,182 into the account, which directly facilitated the payment of bondholder obligations.
“Now, on 31st January 2025, and everybody knows that on 31st January 2025, it was the NDC government that was in power, not you, an amount of $96,915,182 was lodged in the account by the finance minister. And it is clear where that money came from. It did not come from anything that the NPP had left in that account.”
Reiterating his point, he emphasized that the last recorded movement in the account under the NPP occurred on October 22, 2024.
“Let me repeat it. The last time that there was any movement in the debt service recovery account, reserve account, under the NPP, was 22nd October 2024. The balance on that day in the account was $64,387.”
He further detailed that the next significant transaction occurred on January 31, 2025, when the NDC government transferred $96,915,182 into the account to meet financial obligations.
“The next time there was a movement was 31st January 2025. And a transfer of $96,915,182 was made into the account in order to ensure that we are able to meet the obligation that arose on 18th February 2025. That is the payment of maturing coupons to bondholders.”
Providing additional details, Kwakye Ofosu addressed the cedi-denominated Debt Service Reserve Account, stating that by January 2, 2025, under the NPP, the balance was only 155,463,435 Ghana cedis—far below the required 6 billion cedis payment.
“Now, if you look at the Cedi denominated debt service reserve account, you will find also that when the NDC took over on 7th January 2025, the last time that anything had happened in that account before the NPP left was 2nd January 2025. The amount of money in the account on that date, 2nd January 2025, was $155,463,435 Ghana cedis. $155,463,435 Ghana cedis.”
He highlighted that additional funds of 9 billion Ghana cedis had been allocated to cover future obligations in July and August 2025, bringing the total sum to 15 billion cedis.
“Bear in mind that we are talking about payments in excess of 6 billion Ghana cedis. In addition to that, another 9 billion Ghana cedis is actually sitting in the fund as we speak to pay for maturing coupons in July and August. If you put it together, that is 15 billion Ghana cedis.”
In his final remarks, Kwakye Ofosu dismissed the NPP’s buffer claims as baseless, citing factual evidence.
“Yet the balance when the NPP was leaving was 155 million Ghana cedis. So how could they possibly see that they were the ones who built the buffer? What kind of buffer is this? If you have obligations amounting to 15 billion Ghana cedis, is the buffer you need for that 155 million Ghana cedis? And if you check the statement of account, which I am willing to show you, you will see movements of monies into the account starting from somewhere around 23rd January 2025 by this government. And that is the reason why we were able to honor the obligations that arose from the domestic debt exchange program.”
He concluded by affirming that as of February 17, 2025, the account balance was over 9.2 billion Ghana cedis, ensuring adequate buffers for upcoming debt service obligations.
“As I speak to you, as of yesterday, 17th February 2025, the balance in the account was 9,270,537,727.67 cedis. That is the balance. And this balance is there as a buffer against debt service obligations in July and August this year.”
He reiterated that claims by the NPP attributing the payments to buffers they left behind were entirely false.
“So it is clear, on the basis of available facts and evidence, that the claim by members of the NPP administration, which just left power, that we are able to honor these obligations because of buffers they built, is completely untrue.”
Story by: Emmanuel Romeo Tetteh (#RomeoWrites
) / Ahotoronline.com | Ghana 
