Government is set to announce today 14th February, 2023 the final terms of the Domestic Debt Exchange Programme following its expiration of the registration on Friday, February 10, 2023.
The government has recently had some hard time convincing domestic bond holders to sign onto the debt exchange programs resulting in the extension of the deadline for five conservative times.
However, the government on Sunday, 12th February, 2023 announced that it exceeded the 80% target for the domestic depth exchange program required to secure financial support from the International Monetary Fund (IMF).
Mr. Ofori-Atta said the objective of the Programme was “to invite holders of domestic debt to voluntarily exchange approximately GH¢137 billion of the domestic notes and bonds of the Republic, including E.S.L.A. and Daakye bonds, for a package of New Bonds to be issued by the Republic.”
He said it was imperative that his Ministry and the Government act immediately because, if nothing was done, “the Government may not be able to fully service its debt in the future.”
“The Debt Sustainability Analysis (DSA) demonstrated unequivocally that Ghana’s public debt is unsustainable, and that the Government may not be able to fully service its debt down the road if no action is taken. Indeed, debt servicing is now absorbing more than half of total government revenues and almost 70% of tax revenues, while our total public debt stock, including that of State-Owned Enterprises and all, exceeds 100% of our GDP. This is why we are today announcing the debt exchange, which will help in restoring our capacity to service debt.”