A ranking member on the Finance Committee of Parliament says the country’s creditworthiness will hit a further snag over the government’s proposed debt exchange programme.
Dr Cassiel Ato Forson said rating agencies will soon downgrade the country to further junk status.
The Ajumako Enyam Essiam MP thus asked Ghanaians to brace themselves up for more hardships.
He subsequently expressed sympathies with investors in the country.
“Ghana has unfortunately announced a domestic DEBT DEFAULT. Expect rating agencies to downgrade Ghana to D tomorrow!
“Sad day for Ghanaians, the investor community and Banks!”
Finance Minister, Ken Ofori-Atta on Sunday, December 4, announced the government’s domestic debt exchange programme.
These measures include some exemptions and external debt restructuring parameters that will be implemented.
Per his release, treasury bills and individual bondholders will not be affected by this exercise.
However, domestic bondholders will be compelled 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% in 2023, 5% in 2024 and 10% in 2025 until maturity.
“Coupon payments will be semi-annual,” the Minister said.
Meanwhile, Mr Ken Ofori-Atta assured that there will be no haircuts on the principal of bonds.
Latest Stories
-
Philippines’ ex-President Rodrigo Duterte arrested at ICC’s request over ‘drugs war’, government says
14 minutes -
Geisha champions women’s empowerment and progress at 7th National Women’s Summit & Expo
41 minutes -
Musk’s Tesla facilities in US face ‘Takedown’ protests
53 minutes -
Charity M. E. Adupong’s vision of promoting food security and empowering women in agricbusiness
1 hour -
Stocks fall in US and Asia over Trump tariffs concerns
1 hour -
Liverpool need best display of season to beat PSG – Slot
1 hour -
King and Kate return to annual Commonwealth service
2 hours -
US unveils new app for ‘self-deportations’
2 hours -
More than 80% of USAID programmes ‘officially ending’
2 hours -
Ayra Starr, Mofe-Damijo to join Idris Elba as cast of ‘Children of Blood and Bone’
2 hours -
Businessman, farmer granted bail for allegedly defrauding estate developer
2 hours -
Nigeria’s anti-graft agency recovers nearly $500m in one year
3 hours -
NDC Sowutuom branch organiser granted GH¢100,000 bail pending appeal
3 hours -
Facebook was ‘hand in glove’ with China, BBC told
3 hours -
Mahama will fulfill promise to repeal L.I. 2462 within 120 days – Murtala Mohammed
5 hours