Accra, Ghana – Finance Minister Dr. Cassiel Ato Baah Forson has definitively ruled out government compensation for bondholders who experienced losses under Ghana’s Domestic Debt Exchange Programme (DDEP). The announcement came during a joint press briefing in Accra on Friday, where the completion of the US$3 billion IMF loan-supported programme was discussed. While acknowledging the DDEP’s challenging impact on investors and the public, the Minister emphasized the critical relief it provided to the nation’s economy.
Context of the Debt Restructuring
Ghana entered the International Monetary Fund (IMF) programme with a substantial public debt burden, reaching approximately US$63 billion, or 88% of GDP, by the end of 2022. The DDEP was a cornerstone of the government’s economic stabilization efforts, involving the restructuring of around GHS137 billion in domestic bonds. This initiative saw participation from over 95% of bondholders, including corporate entities, individuals, and pension fund holders.
The restructuring process involved adjustments to bond maturities and coupon rates. To safeguard the financial system’s stability, the Bank of Ghana (BoG) absorbed certain losses. This comprehensive debt management strategy was crucial for Ghana to meet the conditions of the IMF’s Extended Credit Facility (ECF).
Government’s Stance on Compensation
Responding to a question from the Ghana News Agency, Dr. Forson characterized the 2022 economic crisis as
Leave a Reply