Some stakeholders in Ghana’s economic and financial sector have commended the Minister of Finance, Ken Ofori-Atta, for fulfilling his promise to the domestic bondholders, a move that has finally ended the agitations and complaints that surrounded the government’s Domestic Debt Exchange Programme.
In a statement, the Extractive Governance Reporting Centre (EGRC) acknowledged the sincerity of the finance minister and officials of the Ministry of Finance in their dealings with the domestic and individual bondholders.
“We are happy that the concerns of the individual bondholders have been addressed. Let’s all support the Finance Minister, Ken Ofori-Atta and the government to address all the challenges facing the economy. Together we win.”
“Mr. Ofori-Atta and his team are capable of restoring macroeconomic stability for our beloved Ghana. The payments of coupons and principals to bondholders is a major step in achieving that”, the statement mentioned..
On Tuesday July 2023, the government announced that it had successfully settled all outstanding arrears owed to individual bondholders.
The Finance Ministry subsequently released a statement confirming the payment of all coupons and principals due up to June 19, 2023, as well as instructing the payment of coupons until July 10, 2023.
The government also reiterated its commitment to maintaining continuous and constructive engagement with the Coalition of Individual Bondholders Groups (CIBG) and implementing the terms outlined in the Memorandum of Understanding (MoU).
The CIBG, comprised of the Ghana Individual Bondholders Forum and the Individual Bondholders Association of Ghana, and had threatened to stage a protest at the Finance Ministry to demand payment of their outstanding principals and coupons after the government failed to honor the agreed payment plan.
However, the government has now fulfilled its commitment and paid all arrears on coupons for bonds maturing by May 31, 2023, as well as coupons falling due from June 1, 2023.
The Finance Ministry expressed gratitude to all bondholders for their unwavering support during this challenging period of low liquidity.
The government also expressed confidence that by working alongside all stakeholders, macroeconomic stability can be restored, whilst inclusive economic growth and transformation of the country can be achieved.
“The Ministry of Finance takes this opportunity to thank all bondholders for their continuous support during this period of tight liquidity. Government is confident that in working with all stakeholders, we shall restore macroeconomic stability, achieve inclusive economic growth, and transform the Republic”, the statement stated.
This latest development brings relief to individual bondholders who can now have confidence in the government’s commitment to fulfilling its financial obligations
