A Deputy Finance Minister, Abena Osei Asare, has disclosed that Ghana needs the Debt Exchange Programme to proceed to the next stage of negotiations with the International Monetary Fund (IMF) to revive Ghana’s economy.
According to the deputy minister, the successful execution of the programme is key to securing IMF assistance to boost confidence in the economy.
Speaking at a forum organised by auditing and accounting firm Deloitte Ghana on November 6, she urged all investors to participate in the programme.
“The economy is in crisis, and we know it’s a difficult time for us. For us to get to the next stage of the IMF programme, we need the debt exchange programme to proceed.”
“We are calling on all and sundry to support the government and achieve this, which will help our businesses thrive. It’s not easy, but we believe within the medium term, Ghana can rise again. It is voluntary, but we encourage everyone to partake in this,” she said.
She explained that the Finance Ministry is working with other financial regulatory bodies to ensure that individual investors do not lose their monies.
“The various terms will be outlined by our various financial Institutions, and they will help us. We are working with the regulatory bodies to make sure nobody loses his/her investments. It is not pleasant but necessary at this point”, she stated.
The debt restructuring will see a slash in interest payments for domestic bondholders to zero per cent in 2023 and five per cent in 2024.
Existing domestic bonds as of December 1, 2022, will also be exchanged for four new bonds maturing in 2027, 2029, 2032 and 2037 – all to restore the nation’s capacity to service its debt.