The Finance Minister, Ken Ofori-Atta, has announced that the government is targeting GH¢137 billion in a debt restructuring program.

The government has stated that due to Ghana’s high debts it has become imperative for them to swap some bonds for new ones in the short, medium, and long term.

At a press conference to announce the beginning of the program on December 5, 2022, he said: “As I announced in the evening of yesterday, Sunday, 4th December 2022, we are gathered here today 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.”

The finance minister also acknowledged that Ghana’s debt has reached unsustainable levels and has exceeded the country’s GDP. Therefore, a debt exchange program is a step to restore the economy back to sustainable levels.

“This is why we are today announcing the debt exchange which will help in restoring our capacity to service debt,” he added.

He further associated the country’s problems with the global economic crisis that countries are currently facing.

“The reasons are quite clear. The covid-19 pandemic, rising global food prices, rising crude oil & energy prices; and the Russia-Ukraine war adversely affected Ghana’s macroeconomy, with spillovers to the financial sector. The combination of adverse external shocks has exposed Ghana to a surge in inflation, a large exchange rate depreciation, and stress on the financing of the budget, which taken together have put our public debt on an unsustainable path,” he said.

Ghana is currently in talks with the International Monetary Fund for financial support.







SSD/FNOQ