The Ministry of Finance (MoF) has refuted claims of debt restructuring involving private banks and local contractors.
This response follows recent publications alleging that the government is engaged in restructuring debts with these entities.
In a statement released on Monday, the MoF clarified, “The Ministry categorically denies any such restructuring being considered, either during or after the domestic debt restructuring program, which began in December 2022 and concluded in October 2023.”
The Ministry explained that during the Monthly Press Briefing on the Economy held on August 29, 2024, a question about external commercial debt restructuring was misinterpreted, leading to reports that obligations to local contractors would be restructured.
“To clarify, debt restructuring pertains to reorganizing Ghana’s debt portfolio, which consists of loans and bonds. Liabilities to domestic contractors are payment claims, not loans or bonds, and therefore are not subject to restructuring,” the statement emphasized.
The MoF also noted that it has never engaged contractors in debt restructuring discussions, a fact confirmed by contractors in a recent interview with JoyNews.
“The Domestic Debt Exchange Programme (DDEP) covered only domestic bonds held by the Central Bank, Pension Funds, and retail debt investors, and did not include payments to contractors.
“Following the DDEP, the Ministry has made significant strides in external debt restructuring, including finalizing an MOU with the Official Creditor Committee under the G20 Common Framework, launching the Consent and Exchange Solicitation process for Eurobond debt, and engaging with external commercial creditors to reach a resolution soon,” the statement concluded.
Source: Adomonline
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