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The government has stated that starting on March 13, 2023, measures will be taken to guarantee the principle and coupon payments on outstanding bonds.
This comes after the Domestic Debt Swap Program’s end (DDEP).
A declaration from the Finance Minister was released on February 27.
According to the Finance Minister, newly resolved and listed bonds will take the place of existing benchmark bonds.
“The newly issued bonds have been settled and listed and will become the new benchmark bonds for the fixed income market. The Ministry of Finance will work with relevant stakeholders, as agreed, to ensure that these new benchmark securities become the basis for deepening the domestic sovereign bond market.”
According to the Ministry, S&P Global Ratings acknowledged the effective conclusion of the DDEP when it increased Ghana’s local currency sovereign credit ratings from selective default (SD) to “CCC+/C.”
“On Friday, 24th February 2023, S&P Global Ratings raised Ghana’s local currency sovereign credit ratings from selective default (SD) to ‘CCC+/C’. This acknowledges the completion of the DDEP with a successful delivery of new securities to bondholders. In doing so, the selective default is substantially cured” the Finance Ministry stated in their press release.
The government pledged to collaborate with its foreign debtors in order to promote the resolution of its external debt.
“The above stated milestone is further expected to accelerate the engagement with our external creditors. The Government of Ghana also takes this opportunity to assure our external creditors of their equal importance to the Republic of Ghana. We will, therefore, continue to work together to advance the progress of our external debt treatment, in order to ensure Ghana’s long-term macroeconomic stability,” the Finance Ministry said in the statement.
Pensioner Bondholders Forum, Individual Bondholders Association of Ghana, and Individual Bondholders Forum previously urged the Finance Minister to require payment of matured bonds that were not submitted under the DDEP.
Read the Finance Ministry press release below:
Source: Ghanatodayonline.com
