Ofori-Atta denies plans to restructure GH¢123bn domestic debt

The Finance Minister, Ken Ofori-Atta, has categorically debunked reports that the government intends to undertake a second round of the Domestic Debt Exchange Programme totalling some GH¢123 billion.

Some media reports on Thursday indicated that the government was likely to restructure some additional GH¢‎123 billion domestic debt instruments.

But addressing journalists in Washington DC on Friday, Mr Ofori-Atta said the government is only working with the pension fund to help with domestic debt service but not undertaking another debt exchange programme.

“No, there is nothing like that, I think that it was a misunderstanding but If you look at it in line with the 22nd December memorandum of understanding that we signed in line with organised labour, pension funds were exempted as you know and that has not changed, and therefore it is really not correct to say that we are planning a second round of domestic debt exchange with pension funds”.

“But what we are doing is working with them to see how they can help us with the domestic debt service, and we maintain debt sustainability and so those discussions are continuing.”

The Finance Minister also revealed that Ghana is likely to receive IMF Board approval for a $3 billion bailout by the close of May 2023.

Mr Ofori-Atta told Eurobond holders at an Investors Presentation Forum that Ghana has made significant progress in terms of restructuring its debt and called on external creditors to support the country’s application for an IMF programme.

“We do at this time expect an IMF board approval in May [2023] and contemplate a rapid negotiation of a Memorandum of Understanding (MoU) with our creditors. We have made significant efforts on all fronts. We hope we could reach an agreement in principle with you our Eurobond holders quickly”.

“We understand this is a challenging time for all of you to commit and offer financial support to all of you. But please be assured we are fully committed to you and your advisors to ensure an equitable solution,” he said.