The government has temporarily stopped paying a number of foreign debts to organizations that have extended loans to the nation. These debts include commercial term loans, the majority of Ghana’s bilateral debts, and bonds denominated in dollars that have been issued on the international financial market (Eurobonds).
On December 13 of this year, the government obtained IMF staff-level approval for a financing program intended to re-establish macroeconomic stability, ensure the sustainability of the debt, maintain financial stability, and safeguard the most vulnerable.
Before that, the Ministry of Finance had introduced the Domestic Debt Exchange Programme, inviting institutional domestic debt holders to voluntarily exchange their debt for four new bonds with maturity dates between 2027 and 2037.
Even though the leaders of the domestic bonds would be paid in full on maturity, no coupon (interest) rate will apply or be paid next year, but five per cent would be paid on all four beginning 2024, up to 10 per cent in 2025 and until maturity.
By the last check, five days to the deadline for the voluntary submission of bonds, the Daily Graphic found out that no investor had taken the government’s offer, which was launched, December 5, this year.