Despite the much-touted success of the country’s debt restructuring programme, there is still a crucial outstanding commercial loan yet to be restructured delaying the completion of the programme.
The local component of the restructuring – the Domestic Debt Exchange has been completed saving the country about GH₵ 61 billion. In all, about GH₵ 206 billion which is equivalent to US$ 17.5 billion worth of domestic bonds were exchanged for longer and lower-interest debt.
Finance Minister, Dr. Mohammed Amin Adam says the domestic restructuring was highly successful as the government received more than a 95% participation rate.
As the government concentrates on the foreign component of the country’s debt, although progress has been made, the Finance Minister has revealed that there is still an outstanding debt that is yet to be restructured to complete the entire program. These outstanding commercial loans, Dr. Amin Adam reveals amount to about US$2.7 billion.
Speaking on the IMF Today Programme in Washington DC, the Finance Minister revealed that although the country is on the verge of closing the chapter on the debt restructuring, the outstanding US$2.7 billion is dragging the process.
He therefore indicated that the government is working hard to restructure this outstanding commercial loan to complete the exercise.
“We are still having an outstanding restructuring with our commercial creditors involving about $2.7 billion. We are working very hard to conclude that. So far I can see that we have been pretty successful at our restructuring. The participation has been great and we see ourselves moving on the path to that sustainability,” Dr. Amin Adam noted.
Despite the much-touted success of the debt exchange programme, Financial Analyst, Dr. Richmond Atuahene fears the country might possibly embark on another debt restructuring in the near future.
He explains to The High Street Journal that the government is not doing enough to improve the country’s cash flows so that the postponed debts can be serviced upon maturity.
