President Akufo-Addo said the government had successfully fulfilled its financial commitments by clearing outstanding coupons owed to bondholders.
During his penultimate State of the Union address in Parliament on Tuesday, February 27, President Akufo-Addo announced that a whopping GH¢5.8 billion in bond holdings would be the largest single day coupon payment in Ghana’s history. It was revealed that the payment was made to
The President highlighted another milestone, noting the government’s achievement in reaching an agreement with bilateral creditors.
“The final stage of the domestic bond exchange on September 5, 2023, one week ago on Tuesday, February 20, 2024, the second coupon of GH¢5.8 billion was paid to domestic bondholders. This is the highest in Ghana’s history. This is the largest coupon paid out in a single day.
“On the external debt front, we have achieved an important milestone in reaching an agreement with our bilateral creditors. I would like to take this opportunity to share with France and the Republic of China, the co-chairs of the Official Creditors Committee, I would like to thank you for playing an active role in this issue.” “
President Akufo-Addo stressed that following the successful payment of domestic bondholders, the government is now actively engaged in negotiations with Ghana’s external creditors. These negotiations are aimed at ensuring the smooth implementation of the Extended Credit Facility with the IMF.
“We have also strengthened our engagement with external bondholders on the basis of principles of transparency, fair treatment, and integrity in line with the IMF’s Debt Sustainability Analysis. We are focused and working on accelerating.”
The government had launched a domestic debt exchange program for individuals and pension bond holders in 2023 as part of a strategy to meet revenue targets and secure an agreement with the International Monetary Fund (IMF).
But the announcement of the program was met with opposition from bondholders, leading to months of protests outside the Treasury Department.
Groups such as the Ghana Individual Bondholders Forum and the Ghana Individual Bondholders Association have expressed dissatisfaction with the government’s failure to comply with a memorandum of understanding intended to outline an agreed payment plan.
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