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According to President Akufo-Addo, the government has successfully met its financial obligations by paying bondholders’ outstanding coupons.
President Akufo-Addo revealed that the largest single-day coupon payment in Ghanaian history, totaling GH¢5.8 billion, had been made to bondholders during his penultimate State of the Nation Address in Parliament on Tuesday, February 27.
The President announced the government’s success in reaching a deal with its bilateral creditors, highlighting yet another significant development.
“For the last leg of the domestic debt exchange on September 5, 2023, a week ago last Tuesday, on February 20, 2024, the second coupon of GH¢5.8 billion was paid to domestic bondholders. This is the largest coupon paid in a day in Ghana’s history.
“On the external debt side, we have achieved a significant milestone by reaching an agreement with our bilateral creditors and I will use this occasion to thank the Republic of China and France, co-chairs of the official creditors committee for their positive roles in this achievement.”
President Akufo-Addo emphasized that the government is currently actively engaged in talks with Ghana’s foreign creditors following the successful payment to domestic bondholders. The goal of these talks is to guarantee that the extended credit arrangement with the IMF is carried out without a hitch.
“We have also intensified our engagement with our external bondholders on the principles of transparency, fair treatment consistent with the IMF debt sustainability analysis and good faith. We are focused and committed to accelerating the process.”
In 2023, the government launched a domestic debt exchange program targeted at pension and individual bondholders as part of its plan to reach an accord with the International Monetary Fund (IMF) and fulfill revenue targets.
Bondholders, however, objected to the program’s announcement, sparking months of demonstrations outside the Finance Ministry.
Source: Ghanatodayonline.com
