March 20, 2023



Debt disaster: Ghana begins home debt swap to avoid wasting financial system

Ghana’s finance minister, Ken Ofori-Atta stated that the nation would start a home debt sawp to avoid wasting the financial system from additional misery.

In line with Ofori-Atta, the nation’s Debt Sustainability Evaluation has been concluded, nevertheless he refused to make disclosure for international collectors.

He stated, “Underneath the Programme, home bondholders shall be requested to alternate their devices for brand new ones. Present home bonds as of 1st December 2022 shall be exchanged for a set of 4 new bonds maturing in 2027, 2029, 2032 and 2037.

“The annual coupon on all of those new bonds shall be set at zero per cent in 2023, 5 per cent in 2024 and 10 per cent from 2025 till maturity. Coupon funds shall be semi-annual.”

Ghana has been affected by debt administration disaster of $54.4 billion, up from $32 billion in 2017.
The IMF initiatives Ghana’s debt-to-GDP ratio will rise to 90.7 per cent by the top of 2022 from 31.3 per cent in 2011.

The brand new debt plan will start on Monday, December 5, 2022.

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