Finance Minister Mohammed Amin Adam has announced that the government, in the coming days, will launch an exchange offer to bondholders, marking a critical step in the external debt restructuring journey.
He said the exchange offer reflected the terms agreed in principle with bondholders on June 24th, including important concessions from bondholders.
The Minister said this step would ensure a fair burden sharing between domestic, official, and commercial external creditors.
He announced this at the monthly press briefing on Ghana’s economy, highlighting the recent development in the government’s effort to restructure its external debts.
Dr. Amin said the exchange would be open for 21 days, adding that the government counted on the full support of the bondholder community, both abroad and in Ghana, to reach high participation levels.
Under the exchange offer, he said investors could choose between two options: first, a nominal value with no nominal haircut but low interest rates, and a Disco option with a 37% nominal haircut but higher interest rates.
The Minister stressed that bond exchange will allow Ghana to save US$4.4 billion in debt service and a cancellation of US$4.7 billion throughout the International Monetary Fund (IMF) programme.
He said the cancellation and absence of debt servicing could contribute to reducing Ghana’s debt-to-GDP ratio to 55% by 2028 to achieve the debt target.
The Minister also said the progress in the external debt restructuring effort would pave the way for normalization of Ghana’s relationship with the international markets, however, he revealed that the government had taken steps to ensure the completion of strategic infrastructure that was impacted by the debt operation.
According to him, this is part of a broader strategy to open up the country for trade, tourism, and regional integration.
