President Akufo-Addo says government has successful fulfilled its financial commitments by clearing the outstanding coupons owed to bondholders.

During his penultimate State of the Nation Address delivered in Parliament on Tuesday, February 27, President Akufo-Addo disclosed that an impressive GH¢5.8 billion has been disbursed to bondholders, marking the largest single-day coupon payment in Ghana's history.

Highlighting another milestone, the President noted the government's achievement in reaching an agreement with bilateral creditors.

“For the last leg of the domestic debt exchange on September 5, 2023, a week ago last Tuesday, on February 20, 2024, the second coupon of GH¢5.8 billion was paid to domestic bondholders. This is the largest coupon paid in a day in Ghana’s history.

“On the external debt side, we have achieved a significant milestone by reaching an agreement with our bilateral creditors and I will use this occasion to thank the Republic of China and France, co-chairs of the official creditors committee for their positive roles in this achievement.”

President Akufo-Addo stressed that following the successful payment to domestic bondholders, the government is now actively involved in negotiations with Ghana's external creditors. These negotiations aim to ensure the smooth execution of the extended credit facility with the IMF.

“We have also intensified our engagement with our external bondholders on the principles of transparency, fair treatment consistent with the IMF debt sustainability analysis and good faith. We are focused and committed to accelerating the process.”

The government had initiated a domestic debt exchange program in 2023, aimed at individual and pension bondholders, as part of its strategy to meet revenue targets and secure an agreement with the International Monetary Fund (IMF).

However, the announcement of the program faced opposition from bondholders, leading to months of protests outside the Finance Ministry.

Groups such as the Ghana Individual Bondholders Forum and the Individual Bondholders Association of Ghana expressed dissatisfaction, citing the government's failure to uphold a Memorandum of Understanding intended to outline an agreed-upon payment plan.