The Government of Ghana is in advanced negotiations with the World Bank to secure a $250 million funding facility aimed at supporting banks and financial institutions impacted by the Domestic Debt Exchange Programme (DDEP).

Objective of the Funding
This initiative is part of the broader Ghana Financial Stability Project.
The funds will provide crucial capital to struggling financial institutions post-debt restructuring.
The government aims to recapitalize at least 11 financial institutions in 2025.
Government’s Commitment to Financial Stability
Speaking at the launch of the Ghana Association of Savings and Loans Companies’ five-year strategic plan, Andrew Amerkson, Head of Banking and Non-Banking at the Ministry of Finance, emphasized the government’s focus on sector stability.
On behalf of Finance Minister Dr. Cassiel Ato Forson, he noted the government’s proactive approach, citing the Ghana Financial Stability Fund, which allocated GH¢5.7 billion to recapitalize bonds and stabilize the financial sector.
Impact of Past Interventions
Dr. Forson highlighted the success of the Ghana Financial Stability Fund A2, which supported 11 financial institutions last year, including:
4 banks
4 capital market operators
3 insurance companies
World Bank Loan: A Key Step Forward
The $250 million loan will focus on recapitalizing banks and savings and loans institutions (SDIs).
It aims to enhance financial sector stability and restore confidence in Ghana’s banking system.
Dr. Forson stressed that beyond addressing liquidity challenges, this funding will ensure that financial institutions remain resilient and contribute effectively to economic growth.
The DDEP’s Impact on Banks
The impairment losses from the DDEP have rendered some local banks technically insolvent, requiring:
Additional capital support from shareholders
Full participation in the Ghana Financial Stability Fund
An IMF Country Report (23/168) indicated that the World Bank, other donors, and the Ghanaian government were expected to provide GH¢1.5 billion to help build capital buffers for qualifying banks.
Government's Next Steps
The government’s latest move comes at a critical time, as it works to:
Stabilize the banking sector
Restore investor and depositor confidence
Ensure the resilience of financial institutions amid economic challenges