Ghana will Swap its Economic Debt to Regain its Stability.

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Ghana will begin trading domestic debt, according to its finance minister Ken Ofori-Atta, who expressed optimism that the action will assist restore macroeconomic stability and put an end to the worst economic crisis in a generation in the West African nation.

Local bonds will be exchanged for new ones under the domestic debt exchange that will have maturities of 2027, 2029, 2032, and 2037.

The annual coupon on the new bonds will be set at 0% in 2023, 5% in 2024, and 10% from 2025 until maturity. The government is negotiating a support program with the International Monetary Fund to ease its debt problems.

Ofori-Atta stated that the government would not apply the terms to holders of Treasury notes or other debt instruments in order to minimize the impact of the debt swap on small investors.

Reuters

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