Indexing government scandals one at a time
Ghana has submitted debt restructuring scenarios to bondholders which include a haircut of 30% to 40% on principal, a coupon of not more than 5%, and a final maturity of not more than 20 years, Finance Minister Ken Ofori-Atta said.
Ghana is aiming to restructure $20 billion out of total external debt that was about $30 billion at the end of 2022, according to a government presentation to investors.
Under the government’s Domestic Debt Exchange Programme (DDEP), domestic bondholders have been asked to exchange their instruments for new ones. Existing domestic bonds as of December 1, 2022 will be exchanged for a set of four new bonds maturing in 2027, 2029, 2032 and 2037. The annual coupon on all of these new bonds will be set at 0 per cent in 2023, 5 per cent in 2024 and 10 per cent from 2025 until maturity.
Oct. 16, 2023
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