The Ministry of Finance has announced an extension of the deadline for the domestic debt exchange from December 19 to December 30, with a contemplated settlement date on January 6, 2023.

According to the Ministry, the extension is in response to feedback from the financial sector on the need to secure internal and Executive Board approvals which are necessary considerations for their participation in the exchange.

“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,” it added.

The extension follows pushback from players in the financial sector concerning the structure of the debt exchange programme.

Critics have argued it is skewed in government’s favour as the majority of the financial burden is placed on the financial sector.

The Ministry stated that it is working with the Bank of Ghana and other regulators (SEC, NPRA, and NIC) in the financial sector and its advisors, including input from various institutions and the Unions to restructure the debt exchange offer.

“We believe this extension will provide enough time for the necessary consultations and analysis to be completed to meet the expectations of local and foreign institutional bondholders while preserving the integrity of the Debt Sustainability Analysis and the Staff Level Agreement,” it concluded.