President Nana Addo Dankwa Akufo-Addo has announced that the government has fulfilled its financial commitments by settling the final coupons owed to bondholders.
This follows the implementation of a domestic debt exchange program aimed at individual and pension bondholders in order to meet revenue targets and reach an agreement with the International Monetary Fund (IMF).
During his State of the Nation address on Tuesday, February 27, President Akufo-Addo revealed that a total of GH¢5.8 billion has been paid to bondholders. He highlighted the historic moment when the second coupon of GH¢5.8 billion was paid to domestic bondholders on February 20, 2024. This marked the largest coupon payment made in a single day in Ghana’s history.
In addition, President Akufo-Addo expressed gratitude to the Republic of China and France for their roles in reaching an agreement with bilateral creditors. He emphasized the government’s commitment to engaging external creditors to ensure the successful implementation of the extended credit facility with the IMF.
Despite initial resistance from bondholders towards the debt exchange program, which resulted in months of protest at the Finance Ministry, the government was able to push through the initiative. The Ghana Individual Bondholders Forum and the Individual Bondholders Association of Ghana raised concerns over the government’s failure to adhere to a Memorandum of Understanding outlining a payment plan.
Moving forward, the government remains focused on engaging external bondholders with transparency, fairness, and good faith, in line with IMF debt sustainability principles. President Akufo-Addo assured that efforts to accelerate the process of engaging with external creditors are ongoing, emphasizing the commitment to fulfilling financial obligations and achieving economic stability.
Apexnewsgh.com/Ghana/Ngamegbulam Chidozie Stephen
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