Debt exchange programme: Would things be smooth or rough with the other steps ahead? – Bright Simons asks

Vice President of Imani Africa Mr Bright Simons has asked whether things would be smooth or rough with the other steps ahead following the announcement of the Debt Exchange Programme by the Finance Minister Ofori-Atta.

He said ‘the deed is done’ following the announcement of the programme that is expected to be launched today, Monday December 5.

He said in a tweet that “Ghana has unilaterally announced a default. First time since 1982. In certain like-for-like respects though it is the 1st time since the 1972 commercial loan default. The question on everyone’s mind is: would things be smooth or rough with the other steps ahead?”

The deed is done.
Ghana has unilaterally announced a default. First time since 1982. In certain like-for-like respects though it is the 1st time since the 1972 commercial loan default. The question on everyone's mind is: would things be smooth or rough with the other steps ahead? pic.twitter.com/EBU28EzTYN

— Bright Simons (@BBSimons) December 4, 2022

Under the programme, he said, ” domestic bond holders will be asked to exchange their instruments for new ones.”

He added “Existing domestic bonds as of 1st December will be exchanged for a set of four new bonds maturing in 2027, 2029, and 2037.”

The annual coupons on all of these bonds will be set at 0 % in 2023, 5% in 2024 and 10% from 2025 until maturity.

“Coupon payments will be semi annual ‘ he stressed.

By Laud Nartey/editors.3news.com/Ghana