Finance Minister Dr. Mohammed Amin Adam has revealed that the government will soon introduce an exchange offer to bondholders, marking a pivotal moment in the process of restructuring external debt.
He noted that the exchange offer aligns with the terms provisionally agreed upon with bondholders on June 24th, which include key concessions from them.
This move, according to the Minister, is designed to ensure an equitable distribution of the debt burden among domestic, official, and commercial external creditors.
He made this announcement during a monthly press briefing on Ghana’s economy, where he outlined the latest developments in the government’s external debt restructuring efforts.
Dr. Amin explained that the exchange will be available for 21 days, and the government is relying on strong participation from the bondholder community, both internationally and domestically.
Under the exchange offer, investors have two options: one offering no nominal haircut with lower interest rates, and another providing a 37 percent nominal haircut but with higher interest rates.
The Minister emphasized that the bond exchange is expected to save Ghana US$4.4 billion in debt servicing costs and lead to the cancellation of US$4.7 billion throughout the duration of the International Monetary Fund (IMF) programme.
He added that these measures could help reduce Ghana’s debt-to-GDP ratio to 55 percent by 2028, aligning with the country’s debt reduction goals.
The Minister also mentioned that progress in the external debt restructuring would help restore Ghana’s standing in international markets.
However, he disclosed that the government has taken measures to ensure the completion of key infrastructure projects affected by the debt restructuring process.
“Our efforts have enabled us to complete the Prempeh (I) International Airport, the Afari Military Hospital in Kumasi, as well as the Yakubu Tali International Airport in Tamale. 23. This week, the President cut sod for the Accra-Tema Motorway redevelopment project. Two (2) days ago, I also visited the Kasoa-Winneba Road, which is being fully funded from the national budget. Like many of you who ply that road, I am very impressed with the progress of work on this critical road,“ he said.
Dr. Amin asserted that the government was working with development partners to implement the Economic Roads Improvement Programme, which includes the Accra-Kumasi Road.
According to him, this is part of a broader strategy to open up the country for trade, tourism, and regional integration.