President Akufo-Addo has disclosed that government has successfully met its financial obligations by fully settling the last coupons owed to bondholders.
This achievement follows the government’s announcement of a domestic debt exchange program in 2023, aimed at individuals and pensioner bondholders, as part of its revenue target to secure an agreement with the International Monetary Fund (IMF).
The President revealed that a total of GH¢5.8 billion has been paid to the bondholders.
“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 further mentioned that following the successful payment to domestic bondholders, the government is now in discussions with Ghana’s external creditors to ensure the effective implementation of the extended credit facility with the IMF.
“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.”
Despite resistance from bondholders, the program was eventually implemented, triggering months of protests outside the Finance Ministry.
The Ghana Individual Bondholders Forum and the Individual Bondholders Association of Ghana, constituting the protesting groups, expressed disappointment over the government’s failure to uphold a Memorandum of Understanding intended to establish an agreed payment schedule.