The Ministry of Finance has debunked claims suggesting that the government is engaging in debt restructuring with private banks and local contractors.
The Ministry in a statement dated Monday, September 9, 2024, said no such restructuring has been contemplated during or after the domestic debt restructuring programme, which commenced in December 2022 and came to a firm close in October 2023.
The statement explained that “during a recent Monthly Press Briefing on the Economy held on 29th August 2024, a question was raised regarding external commercial debt restructuring, the response to which was misinterpreted to mean that obligations to local contractors were going to be restructured.”
It said the Ministry of Finance has never engaged or invited contractors for debt restructuring discussions.
The Ministry clarified that debt restructuring refers to the reorganisation of Ghana’s stock of debt, comprising loans and bonds, adding that “Domestic contractors’ liabilities, on the other hand, are payment claims, not loans or bonds, and do not fall under the category of obligations eligible for restructuring.”
Below is a full copy of the statement from the Ministry of Finance
The attention of the Ministry of Finance has been drawn to recent publications by some media houses, suggesting that the government is engaging in debt restructuring with private banks and local contractors.
2.The Ministry wishes to state categorically that no such restructuring has been contemplated during or after the domestic debt restructuring program, which commenced in December 2022 and came to a firm close in October 2023.
3.During a recent Monthly Press Briefing on the Economy held on 29th August 2024, a question was raised regarding external commercial debt restructuring, the response to which was misinterpreted to mean that obligations to local contractors were going to be restructured.
4.To clarify, debt restructuring refers to the reorganization of Ghana’s stock of debt, comprising loans and bonds. Domestic contractors’ liabilities, on the other hand, are payment claims, not loans or bonds, and do not fall under the category of obligations eligible for restructuring.
5.The Ministry of Finance has never engaged or invited contractors for debt restructuring discussions, a fact corroborated by contractors in a recent interview with JoyNews.
6.The completed Domestic Debt Exchange Programme (DDEP) only covered domestic bonds held by the Central Bank, Pension Funds, and retail debt investors, with no mention of contractors’ payments.
7.Following the DDEP, the Ministry has made significant progress in external debt restructuring, including:
- Completing an MOU with the Official Creditor Committee under the G20 Common Framework
- b) Launching the Consent and Exchange Solicitation process for Eurobond debt
- c) Commencing engagement with external commercial creditors to reach a beneficial solution in the coming weeks.
8.The Ministry of Finance appreciates the public’s support during this complex process and urges Ghanaians to disregard the false information circulating about debt restructuring with contractors.