Ghana has announced a suspension of all debt service payments under certain categories of external debt, pending an orderly restructuring of the affected obligations.
The suspension, according to a Press Statement by the Finance Ministry will include the payments on Eurobonds; commercial term loans; and on most of the country’s bilateral debt.
But the Ministry clarified that, “this suspension will not include the payments of our multilateral debt, new debts (whether multilateral or otherwise) contracted after 19th December 2022 or debts related to certain short term trade facilities. We are also evaluating certain specific debts related to projects with the highest socio-economic impact for Ghana which may have to be excluded.”
The suspension is an interim emergency measure pending future agreements with all relevant creditors, the statement noted.
The Ministry of Finance is set to hold an investor presentation on the development shortly.
“The Government stands ready to engage in discussions with all of its external creditors to make Ghana’s debt sustainable through a fair, transparent and comprehensive debt restructuring exercise in line with international best practices,” said the Finance Ministry.
On the domestic front, domestic bondholders as part of a debt exchange program are billed to exchange their instruments for new ones, Finance Minister Ken Ofori-Atta said weeks ago in a Televised announcement.
According to him, existing domestic bonds as of 1st December 2022, will be exchanged for a set of four new bonds maturing in 2027, 2029, 2032, 2037.
Meanwhile, the Finance Minister stressed “There will be NO haircut on the principal of bonds, adding Individual holders of bonds will not be affected.
Also, Treasury Bills were exempted from the haircut as holders will be paid the full value of their investments on maturity.
Source: Ghana/Starrfm.com.gh/103.5 Fm
