The government has announced that all payments due to bondholders have been paid in full.
On Monday, July 10, 2023, the Ministry of Finance released a statement expressing gratitude to all bondholders for their unwavering support throughout the country’s current financial crisis. The administration is certain that with the help of all parties involved, they will be able to bring about macroeconomic stability, inclusive economic growth, and the transformation of the Republic.
Over a period of months, individual bondholders have complained, demanding that the government pay back overdue payments. The government had previously recommended a 15% coupon rate, prompting this action.
The program was announced by Ghana’s Minister of Finance, Ken Ofori-Atta, who said the country was facing a “very challenging economic situation” due to the COVID-19 pandemic, the global economic shock caused by the Russian invasion of Ukraine, and disruptions in global supply chains.
Treatment of domestic debt is necessary, he said, because it allows the government to reduce the debt burden in the most open, efficient, and rapid way possible. He also noted that the invitation does not involve a haircut on the principal amount of the eligible bonds but rather an exchange for new bonds issued by the government of Ghana with a 0% coupon in 2023, rising to 5% in 2024 and 10% in 2025 and beyond.
