Ghana has made progress toward finishing its initiative, a crucial component in reestablishing economic stability and growth, by reaching an agreement with the nation’s insurers on a domestic debt exchange, according to the finance ministry.
Insurance companies would engage in the exchange program on par with banks, the ministry and the Ghana Insurers Association (GIA) stated in a joint statement. For its domestic debt swap program, which has encountered pushback from individual bondholders due to a lack of information over its terms, it needs around 80% of bondholders to join up.
The original debt swap plan stated that the 2023 bonds would not pay interest, but the government announced that it had reached an agreement with banks to pay a 5% coupon on those bonds.
The Administration through the solvency window of the Ghana Financial Stability Fund (GFSF) will provide support for the insurance companies that are seriously affected by the debt exchange programme,” the joint statement with the insurers said.