President John Dramani Mahama has described December 19, 2022, as one of the darkest days in Ghana’s economic history, recalling that it was on that day the country declared its inability to honour its debt obligations.

Delivering the State of the Nation Address on February 27, the President stated that Ghana announced a debt default and placed a moratorium on both domestic and foreign debt repayments.

According to him, the decision marked the beginning of a protracted and complex debt restructuring process that placed significant strain on the nation.

“Ghana’s debt became a shackle on our economic progress, dragging our nation into hardship and despair,” he said.

Reflecting on the restructuring process, President Mahama noted that an analysis of Ghana’s debt profiling suggested that previous negotiations had only postponed the burden, with the largest debt repayments scheduled between 2025 and 2028.

However, he stressed that his administration confronted the crisis with decisive action rather than rhetoric.

He explained that the government established sinking funds, restructured obligations, and pursued bilateral agreements to stabilise the economy.

As a result of these measures, public debt was reduced by GHS82.1 billion, bringing the debt-to-GDP ratio down from 61.8 per cent to 45.3 per cent — one of the sharpest reductions in Ghana’s history.

The President further revealed that on January 2, shortly after the New Year, Ghana settled a US$709 million Eurobond ahead of schedule, completing a total of US$1.4 billion in debt service originally due in 2025.

He added that the international financial community had taken notice of Ghana’s progress.

Global credit rating agencies, including Fitch Ratings, Moody's, and Standard & Poor's, upgraded Ghana’s credit ratings — marking the first triple upgrade in many years.