Audio By Carbonatix
The Finance Ministry on Wednesday said negotiations on the terms of a domestic debt exchange agreement with local pension funds were continuing and that they would be made public once an agreement on the details is reached.
Government, in a bid to mitigate an ongoing economic crisis, has negotiated a staff-level agreement for a $3 billion loan package from the International Monetary Fund (IMF).
The deal will only be approved by the IMF board if Ghana undergoes comprehensive debt restructuring, the fund has said.
In early December, the finance ministry launched a plan to exchange local bonds for longer-dated maturities. But after the deal met stiff opposition, the government said it would exempt pension funds from the restructuring programme.
Late on December 24, it extended the deadline for the exchange to January 16 from December 30, having previously extended it from December 19.
It also announced a change to the debt exchange, with eight additional instruments to be created.
"Were the participation to the domestic debt exchange too low, the perennity of the Government's efforts to resolve the current crisis and the expected international financial support would be jeopardised," the Finance Ministry said in a Q&A document.
It added this would put "further strains on the Government's capacity to honour its commitments and repay its debt."
Ghana's public debt was ¢467.4 billion ($46.7 billion) in September 2022, of which 42% was domestic debt, according to the most recent central bank figures.
Government on Tuesday requested a restructuring of its bilateral debt through the Common Framework platform set up by the Group of 20 major economies, a source familiar with the situation told Reuters.
Latest Stories
-
Nafan FC crowned champions of inaugural PAJ Foundation giveback tournament
19 minutes -
Prof H. Prempeh questions compulsory retirement at 60, proposes extended working age for lecturers
34 minutes -
Trump says progress made in Ukraine talks but ‘thorny issues’ remain
60 minutes -
Fear and confusion in Nigerian village hit in US strike, as locals say no history of ISIS in area
1 hour -
Health Minister calls for collective action to fast-track Western North’s development
1 hour -
Mahama Ayariga leads NDC delegation to Bawku ahead of Samanpiid Festival
6 hours -
Edem warns youth against drug abuse at 9th Eledzi Health Walk
9 hours -
Suspension of new DVLA Plate: Abuakwa South MP warns of insurance and public safety risks
10 hours -
Ghana’s Evans Kyere-Mensah nominated to World Agriculture Forum Council
10 hours -
Creative Canvas 2025: King Promise — The systems player
11 hours -
Wherever we go, our polling station executives are yearning for Bawumia – NPP coordinators
11 hours -
Agricultural cooperatives emerging as climate champions in rural Ghana
11 hours -
Fire Service rescues two in truck accident at Asukawkaw
11 hours -
Ashland Foundation donates food items to Krachi Local Prison
11 hours -
Akatsi North DCE warns PWD beneficiaries against selling livelihood support items
11 hours
