The government of Ghana has extended the deadline for its controversial domestic debt exchange program to the 30th of December, a Finance Ministry statement has announced.
The delay, according to the statement, follows a series of meetings with stakeholders in the program.
“The extension… affords Government of Ghana the opportunity to consider suggestions made by all Stakeholders with the aim of adjusting certain measures,” the statement said.
“We also fully considered feedback from the financial sector in relation to the need to secure internal and Executive Board approvals which are necessary considerations for their participation in the Exchange.
“This in some instances may require emergency board meetings etc. The extension also affords Government of Ghana the opportunity to consider suggestions made by all Stakeholders with the aim of adjusting certain measures acceptable within the constraints of the Debt Sustainability Analysis.
“Considering these developments, and taking cognizance of the festive season, we have decided to extend the Expiration Date of the voluntary offer to Friday December 30th, 2022, with a contemplated settlement date on Friday January 6th, 2023” portions of the statement said.
Ghana is currently seeking a $3m IMF loan, for which a staff-level agreement was announced earlier this week.
Still, the domestic debt exchange program is a necessary evil the government needs to implement before receiving full approval from the IMF.
Finance Minister Ken Ofori-Atta announced the domestic debt exchange (DDE) program on Sunday, December 4.
The program is to see the exchange of existing domestic bonds with four new ones, as well as their maturity dates and terms of coupon payments.
He also addressed the overarching goal of the government relative to its engagements with the International Monetary Fund as well as measures to minimize the impact of domestic bond exchange on different stakeholders.
“The Government of Ghana has been working hard to minimize the impact of the domestic debt exchange on investors holding government bonds, particularly small investors, individuals, and other vulnerable groups,” he said.
Source: theGhanaianVoice.Com