Accra, Aug. 31, GNA – The government has secured a total of US$741,734,252 at the end of the US dollar-denominated bonds exchange programme, representing 91 per cent of the approximately $809 million.
The exchange programme forms part of the government’s effort to help restore sound public finance and return debt to sustainable levels to propel economic growth and stability.
It is to also contribute to efforts to unlock support of the international community and allow Ghana to achieve its debt targets under the current US$3 billion loan-support programme with the International Monetary Fund (IMF).
The Ministry of Finance in a press statement copied to the Ghana News Agency on Tuesday, August 29, announced the results of the US dollar-denominated bonds exchange, which ended on August 25, 2023.
“This result is a significant achievement for the Government to implement fully the economic strategies in the post-COVID-19 Programme for Economic Growth (PC-PEG) during this current economic crisis,” the statement said.
It also announced a new September 4, 2023, as the Settlement Date of the exchange instead of the previous September 1, 2023.
The Ministry explained that the extension of the settlement date was “to provide sufficient time to settle the new bonds in an efficient manner”.
Also, the issue date, interest accrual schedules and payment schedules for the New Bonds would be adjusted to reflect the actual Settlement Date.
“The Government expresses its deep appreciation to bondholders and key stakeholders for their immense support of the Domestic Debt Exchange Programme (DDEP),” the statement said.
This development is coming on the back of the government’s three-year Post-COVID-19 Programme for Economic Growth (PC-PEG) programme with the IMF.
The programme is to provide balance of payment support as part of a broader effort to quicken the country’s recovery from an economic crisis induced by the COVID-19 pandemic, Russia-Ukraine war and internal structural problems.
It is to also help create the conditions for inclusive and sustainable growth and job creation, help to alleviate the exchange rate pressures, stabilise the depreciating currency, and provide a catalytic effect on additional sources of financing.
The government has received the first tranche of $604m of the $3bn, awaiting a review of the programme in September, which would enable further disbursement from IMF.
In addition to finalising negotiations with bilateral creditors before the September review, other debt exchanges, including a GHS7.93 billion Ghana Cocoa Board (COCOBOD) debt securities exchange programme is also ongoing.
GNA