President Akufo-Addo announced during his penultimate State of the Nation Address in Parliament on Tuesday, February 27, that the government had successfully fulfilled its financial commitments by clearing the outstanding coupons owed to bondholders.
He disclosed that an impressive GH¢5.8 billion had been disbursed to bondholders, marking the largest single-day coupon payment in Ghana’s history.
Additionally, the President highlighted another milestone, noting the government’s achievement in reaching an agreement with bilateral creditors.
“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 emphasized that after successfully paying domestic bondholders, the government is now engaged in negotiations with Ghana’s external creditors. These negotiations are aimed at facilitating the smooth 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.”
In 2023, the government launched a domestic debt exchange program targeting individual and pension bondholders. The program was part of its strategy to achieve revenue targets and secure an agreement with the International Monetary Fund (IMF).
However, the announcement of the program was met with opposition from bondholders, leading to months of protests outside the Finance Ministry.
Groups like the Ghana Individual Bondholders Forum and the Individual Bondholders Association of Ghana expressed dissatisfaction, citing the government’s alleged failure to uphold a Memorandum of Understanding that was intended to outline an agreed-upon payment plan.