President Nana Addo Dankwa Akufo-Addo has revealed that the government has fulfilled its financial obligations by settling the last coupons owed to bondholders.
The government announced a domestic debt exchange programme in 2023 targeted at individual and pension bondholders as part of its revenue target to reach an agreement with the International Monetary Fund (IMF).
During the State of the Nation address on Tuesday, February 27, President Akufo-Addo disclosed that GH¢5.8 billion has been paid to the bondholders.
“For the last leg of the domestic debt exchange on September 5, 2023, a week ago last Tuesday, on February 20, 2024, the second coupon of GH¢5.8 billion was paid to domestic bondholders. This is the largest coupon paid in a day in Ghana’s history.
“On the external debt side, we have achieved a significant milestone by reaching an agreement with our bilateral creditors and I will use this occasion to thank the Republic of China and France, co-chairs of the official creditors committee for their positive roles in this achievement.”
He added that, having successfully paid the domestic bondholders, the government is currently engaging Ghana’s external creditors to achieve a successful implementation of the extended credit facility with the IMF.
“We have also intensified our engagement with our external bondholders on the principles of transparency, fair treatment consistent with the IMF debt sustainability analysis and good faith. We are focused and committed to accelerating the process.”
Bondholders kicked against the announcement of the programme but it was eventually rolled through, which led months of picketing at the Finance Ministry.
The groups, made up of the Ghana Individual Bondholders Forum and the Individual Bondholders Association of Ghana, lamented that the government had failed to honour a Memorandum of Understanding meant to guide an agreed payment plan.