The Ministry of Finance has said that the Government of Ghana will continue to work with external creditors to advance the progress of our external debt treatment in order to ensure Ghana’s long-term macroeconomic stability.
The Ministry assured the external creditors of their equal importance to the Republic of Ghana.
“The newly issued bonds have been settled and listed and will become the new benchmark bonds for the fixed income market.
“The Ministry of Finance will work with relevant stakeholders, as agreed, to ensure that these new benchmark securities become the basis for deepening the domestic sovereign bond market,” the Finance Ministry stated in the statement.
It added “In fulfillment of the assurance given by the government to bondholders who did not tender, the Ministry is taking administrative steps to ensure payments of coupons and principals of old bonds resume by 13th March 2023.”
The Ministry also said S&P Global Ratings which raised Ghana’s local currency sovereign credit ratings from selective default (SD) to ‘CCC+/C’, acknowledges the successful completion of the Domestic Debt Exchange Programme (DDEP).
It noted that “on Friday, 24th February 2023, S&P Global Ratings raised Ghana’s local currency sovereign credit ratings from selective default (SD) to ‘CCC+/C’. This acknowledges the completion of the DDEP with the successful delivery of new securities to bondholders. In doing so, the selective default is substantially cured”.
“The above-stated milestone is further expected to accelerate the engagement with our external creditors. The government of Ghana also takes the opportunity to assure our external creditors of their equal importance to the Republic of Ghana.
“We will therefore continue to work together to advance the progress of our external debt treatment in order to ensure Ghana’s long-term macroeconomic stability.”
The Managing Director of the International Monetary Fund has appealed to creditor-nations group Paris Club to quicken the process to restructure Ghana’s debt, warning that further delays will undermine the country’s stability.
Kristalina Georgieva urged G20 countries to speed up the formation of a Creditor Committee for Ghana, which is needed to reorganize its external debt of 382 billion cedis ($29.1 billion).
“It is now critical to complete Zambia’s debt restructuring, establish a Creditor Committee for Ghana, and advance work with Ethiopia,” the IMF boss made the appeal at the first meeting of the G20 Finance Ministers and Central Bank Governors in Bengaluru, India.
A creditor committee will enable Ghana to formally seek financial assurances from bilateral creditors and gauge their willingness to engage in debt restructuring negotiations.
Ghana is reorganizing its total public debt, estimated at 575 billion cedis, to secure a $3 billion bailout from the IMF.
The country completed a domestic debt swap this month after five deadline extensions for bondholders to participate in the exchange.
Kristalina’s appeal comes a day after the German Ambassador to Ghana held an unusual press conference to discuss conditions needed to be met before Paris Club members would agree on a debt relief package for the cocoa-producing nation.
Daniel Krull warned that the country’s bailout request with the IMF would be in jeopardy unless China agrees to a joint debt relief package.
“The Big elephant in the room is China. China is the largest creditor to Ghana and so far it is not supportive of setting up of a creditors’ committee, where the creditors will sit down and agree on an aid package for Ghana,” the German diplomat said during the press engagement.
China is Ghana’s biggest bilateral creditor with $1.7 billion of debt, while the country owes $1.9 billion to Paris Club members.
By Laud Nartey|3news.com|Ghana