We can’t access IMF loan if we don’t restructure debt – Ofori-Atta

The Government of Ghana has dismissed plans to force bondholders to participate in the bond restructuring programme.

The government is also pleading with domestic debt holders to participate in the debt restructuring programme so that the country can exit the distress in the shortest possible time.
The minister of Finance, Ken Ofori-Atta, made the statement on Monday during an update on the state of the Ghanaian economy.

The Whistler had reported that the country had begun a debt swap under which arrangement, old bondholders will swap for a set of four new ones maturing in 2027, 2029, 2032 and 2037.

The coupon on the bonds will be set at zero per cent in 2023, five per cent in 2024, and 10 percent from 2025 until maturity.

But the Minister is confident that the measure will translate into improving the lives of Ghanaians.

Ofori-Atta said, “The alternative will be a far worse economic crisis with protracted closure from the international market including imported goods and services and further domestic economic instability both for the real economy and the financial sector.

“Ghana is not the first nation to undertake such domestic debt operation. To illustrate a point let me cite the example of just two countries among many others in the last two decades.”

He mentioned Jamaica’s case with “99 per cent participation” and Greece where he said the authorities chose to undertake a coercive approach whereby a law was passed to force people into participating.

The minister revealed, “We intend to avoid as much as possible the Greek approach as we strive to reach a consensual solution for our bondholders which is the Ghanaian way