Govt is not planning another domestic debt exchange with pension funds – Ofori-Atta

The Minister of Finance, Ken Ofori-Atta has dismissed reports that the government is planning on a second domestic debt exchange programme.

He said further reports that pensions funds will be included in the reported exchange programme is far from the truth.

Addressing journalists in Washington DC on Friday, Mr Ofori-Atta said the government is only working with the pension fund to help with domestic debt service but not undertaking another debt exchange programme.

“No, there is nothing like that, I think that it was a misunderstanding but If you look at it in line with the 22nd December memorandum of understanding that we signed in line with organised labour, pension funds were exempted as you know and that has not changed, and therefore it is really not correct to say that we are planning a second round of domestic debt exchange with pension funds”.

But what we are doing is working with them to see how they can help us with the domestic debt service, and we maintain debt sustainability and so those discussions are continuing.”

The Finance Minister also revealed that Ghana is likely to receive IMF Board approval for a $3 billion bailout by the close of May 2023.

Finance Minister, Ken Ofori-Atta

Mr Ofori-Atta told Eurobond holders at an Investors Presentation Forum that Ghana has made significant progress in terms of restructuring its debt and called on external creditors to support the country’s application for an IMF programme.

“We do at this time expect an IMF board approval in May [2023] and contemplate a rapid negotiation of a Memorandum of Understanding (MoU) with our creditors. We have made significant efforts on all fronts. We hope we could reach an agreement in principle with you our Eurobond holders quickly”.

Some media reports on Thursday indicated that the government was likely to restructure some additional GH¢‎123 billion domestic debt instruments.



Leave a Reply

Your email address will not be published. Required fields are marked *