Debt crisis: Ghana begins domestic debt swap to save economy

Ghana’s finance minister, Ken Ofori-Atta said that the country would begin a domestic debt sawp to save the economy from further distress.

According to Ofori-Atta, the country’s Debt Sustainability Analysis has been concluded, however he refused to make disclosure for foreign creditors.

He said, “Under the Programme, domestic bondholders will be asked to exchange their instruments for new ones. Existing domestic bonds as of 1st December 2022 will be exchanged for a set of four new bonds maturing in 2027, 2029, 2032 and 2037.

“The annual coupon on all of these new bonds will be set at zero per cent in 2023, five per cent in 2024 and 10 per cent from 2025 until maturity. Coupon payments will be semi-annual.”

Ghana has been plagued by debt management crisis of $54.4 billion, up from $32 billion in 2017.
The IMF projects Ghana’s debt-to-GDP ratio will rise to 90.7 per cent by the end of 2022 from 31.3 per cent in 2011.

The new debt plan will begin on Monday, December 5, 2022.

About Blessing Anaro, Lagos, with agency report

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