Ghana considering 30% cut on foreign bonds, deputy minister says

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Ghana’s government is considering a 30% cut on foreign bonds and the suspension of interest rate payments to domestic bondholders in 2023 as part of debt restructuring efforts, deputy finance minister John Kumah said on private radio station JoyFM on Thursday.

The full details of the debt exchange program will be announced by the end of November, he said, noting that it would not be a haircut.

Kumah told Reuters the measures he referred to on JoyFM were “not conclusive” and only proposals “at this stage”.

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“It’s true that we have a debt exchange program preparing to engage investors with various proposals, no decisions [on percentages] yet,” he said.

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Ghana is negotiating a relief package with the International Monetary Fund as the cocoa, gold, and oil-producing nation faces its worst economic crisis in a generation.

Finance Minister Ken Ofori-Atta announced a series of measures earlier on Thursday to cut expenditure and boost revenue in a bid to tackle spiralling debt.

Kumah was speaking on JoyFM as part of a live debate with opposition spokesperson Cassiel Ato Forson.

Reuters