The Director of the Institute of Statistical, Social and Economic Research (ISSER) at the University of Ghana, Professor Peter Quartey, has stated that the completion of the debt restructuring programme will bring certainty to the financial market.

He suggested that the announcement will also positively affect the exchange rate and, by extension, inflation.

Professor Quartey mentioned that the completion of the debt restructuring programme would clear the way for proper investment, leading to more financial inflows.

"This announcement brings a certain level of certainty to the market because we have been waiting for it far too long. Many investors, both individual and corporate, have been waiting for this news. You know, the financial system doesn't like noise; it doesn't like uncertainty. So for me, it clears the way for many things to happen. More inflows may come in. It also clears the way for people to invest properly, and it will certainly have some positive effect on the exchange rate and, by extension, inflation," Professor Quartey told journalists on Tuesday, June 25, 2024.

Meanwhile, domestic debt restructuring, external bilateral debt restructuring, and commercial bondholders' debt restructuring were the three major debt restructuring operations carried out by the government with its official creditors, the Finance Minister, Dr. Mohammed Amin Adam, announced.

Speaking at a town hall meeting in the UK on Sunday, June 23, 2024, Dr Amin Adam indicated that the government has successfully restructured its debt of US$5.1 billion with its creditors, in addition to concluding the restructuring of US$13.1 billion with Eurobond holders.

To meet its IMF target, the $77 billion economy needs to reduce debt to 55% of gross domestic product by 2028, compared with a burden of 109% projected for the year before Ghana began restructuring.

The current bondholder agreement would leave debt slightly above that target.

SA/NOQ

Watch the latest BizTech below;