The Ghanaian government has refuted claims that it plans to restructure debts owed to local contractors.
On September 9, 2024, the Finance Ministry clarified that there are no current or future plans to undertake such a restructuring.
“No such restructuring has been contemplated during or even after the domestic debt restructuring programme, which commenced in December 2022 and came to a close in October 2023”, the statement said.
This clarification comes after recent comments by Finance Minister Dr. Mohammed Amin Adam about restructuring approximately US$2.8 billion in external commercial debt were misconstrued.
The Ministry explained that the focus of the debt restructuring is on reorganizing Ghana’s overall debt portfolio, including loans and bonds, not on local contractors’ payment claims.
The Domestic Debt Exchange Programme, which ended in October 2023, only addressed domestic bonds held by entities such as the central bank, pension funds, and retail investors, and did not cover contractors’ payments.
The Ministry has never involved contractors in any discussions regarding debt restructuring.
In terms of Ghana’s broader debt restructuring efforts, significant progress has been made with external bilateral creditors, including the finalization of an MOU with the Official Creditor Committee under the G20 Common Framework.
The government has also initiated a Consent and Exchange Solicitation process to restructure around US$30 billion in Eurobond debt, with the offer closing on September 30, 2024.
Additionally, the government plans to begin negotiations with external commercial creditors in the near future.