The uncertainty around government’s debt exchange programme appears to be deepening as the Finance Minister extends the deadline again.
The deadline is now January 31, to allow government more time to build consensus.
This is the third extension for bondholders to voluntarily exchange their bonds for new ones.
It is not clear yet how many institutions or individuals have signed onto the programme largely rejected by various stakeholders.
Government launched the programme to invite bondholders to voluntarily exchange approximately GH¢137 billion domestic notes and bonds of the Republic including ESLA and Daakye for a package of new bonds.
This is part of measures to address economic challenges, which have forced government to seek International Monetary Fund (IMF) bailout.
Minority NDC Calls For Immediate Suspension Of Debt Exchange Programme
Meanwhile, the Minority caucus in Parliament is demanding an immediate suspension of the programme.
The caucus says the programme is not well-structured, and a suspension will help government consult more.
Addressing a news conference on Monday, the Minority Leader, Haruna Iddrisu, said the programme in its current form will severely affect bondholders already bearing the brunt of economic difficulties.
He’s also concerned about the negative impact of the programme on the financial sector if implemented.
Government has proposed that all bondholders will not receive any interests on their bonds for the 2023 financial year.
The payment of dividends, according to government, is likely to begin next year, 2024 at a discounted rate of 5%. Bondholders who may want to transfer their bonds will not get the full principal they initially invested as bonds.
