Ken Ofori-Atta, the minister responsible for finance, has refuted rumors that the government plans to launch a second phase of the Domestic Debt Exchange Program with a value of about GH 123 billion.
On Thursday, some media reports suggested that the government would restructure some further domestic debt instruments totaling GH 123 billion.
But, Mr. Ofori-Atta stated at a press conference in Washington, DC, that the government is just collaborating with the pension fund to assist with domestic debt service and is not undertaking another debt exchange program.
“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.
“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.
