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BusinessGovernment will pay back unpaid bond payments in two days - Finance...

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Government will pay back unpaid bond payments in two days – Finance Ministry

The government has announced that it will settle the outstanding principal and coupon on the bonds that were due on February 6 and 13, 2023, in two days.

The proceedings to settle payments for the outstanding bonds began on Monday, March 13, 2023, according to a statement from the government that was released by the finance ministry on Tuesday.

“Holders of the afore-listed bonds should therefore expect to receive their payments within the next 48 hours,” it said.

The statement added that payment dates for subsequent maturities would be communicated in due course, as processing continued.

The Finance Ministry on behalf of the Government, thanked all stakeholders for their forbearance during the Domestic Debt Exchange Programme (DDEP) and subsequent administrative processes.

The Government secured a Staff-Level Agreement (SLA) with the IMF last year, and launched the DDEP to assure the Fund of creditors’ confidence to meet its debt obligation.

The DDEP is part of Ghana’s debt restructuring process, which is a prerequisite for the country’s $3 billion Extended Credit Facility (ECF) programme with the International Monetary Fund (IMF).

The DDEP officially closed on February 13, with the Government  swapping a total of GHS83 billion worth of old bonds and subsequently announced a similar process with its external creditors.

While much information has not been provided on the progress of the external debt restructuring, the Managing Director of the IMF, Kristalina Georgieva, said recently that the Fund was happy with the progress Ghana had made to present its SLA for the Fund’s review and approval.

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