JoyNews can confirm that government is set to suspend interest payments for domestic bondholders and impose a 30% haircut on foreign bonds.

Speaking exclusively to JoyNews after the presentation of the 2023 budget, Deputy Finance Minister John Kumah explained that under the debt restructuring arrangement domestic bondholders will receive zero interest for 2023.

In the second year, they will receive only 5% interest and a further 10% interest in the third year.

Domestic bondholders can only expect to start receiving their full interest in 2026.

The arrangement will not affect the principal.

For foreign bondholders, government is proposing a 30% haircut on both principal and interests.

According to Mr Kumah, details of the restructuring will soon be placed before investors.

He says government is hoping to reach an agreement with investors before the end of the year.

He also confirmed that government will be placing before Parliament in the next few weeks a new law to amend the terms for all government bonds to legalise the restructured arrangement.

Reacting to the details, the Minority Spokesperson on Finance, Dr Cassiel Ato Forson said the NDC minority side will reject any attempt by government to pass a law to legalize the restructured arrangement.

Government cannot access an International Monetary Fund (IMF) programme approved by the executive board without an arrangement that brings the country’s debt to sustainable levels.