President Akufo-Addo has announced the resumption of stalled projects nationwide, following a $4.7 billion debt cancellation from the Eurobond restructuring deal.
The government has agreed in principle with two bondholder groups to restructure approximately $13 billion of its debt, making Ghana the second African country this month to reach the final stages of a debt overhaul.
This agreement is expected to provide Ghana with a cash flow relief of about $4.4 billion until 2026, when the current International Monetary Fund programme ends.
Speaking at the Jubilee House, President Akufo-Addo highlighted that the restructuring deal demonstrates renewed confidence in Ghana's economy.
"An agreement has been struck over the restructuring of $13.1 billion of value of debts. The agreement will result in significant savings to the government. The savings include the cancellation of $4.7 billion. Many of the projects stalled as a result of the debt negotiations will now resume," he assured.
Read also: Finance Minister announces official end to Ghana’s debt restructuring
In a related development, Finance Minister Dr. Mohammed Amin Adam has also announced the completion of Ghana’s debt restructuring programme with its official creditors. The government successfully restructured $5.1 billion of its debt with these creditors, in addition to the $13.1 billion restructuring with Eurobond holders.
Addressing attendees at a UK Town Hall meeting, Dr. Amin Adam highlighted that these efforts have resulted in savings of $8 billion for the country.
However, Associate Professor of Finance at Andrews University, Williams Kwasi Peprah, questioned the accuracy of the Finance Minister's claims.
Speaking on Joy FM’s Top Story, he suggested that the minister’s comments might have been politically motivated.
"I am sure he was on a political platform and maybe he did not check his figures very well. Last week they announced that the bilateral creditors have given us debt deferment.."
Mr Peprah further noted that after a 37% haircut, the remaining amount for Ghana to pay on the Eurobond debt is $8.25 billion.
He emphasised that the true savings can only be determined once the final document is reviewed by Parliament in the mid-year budget adding, "If you really do the Maths very well, the figures do not tally based on what he said on the platform."
Latest Stories
-
Ensure free and fair elections – Opoku-Agyemang tells EC
33 mins -
K.T. Hammond is wrong to introduce a bill to regulate cement prices – Kofi Adams
33 mins -
Accidents claim more lives in election year — NRSA
1 hour -
Photos from burial service of Mawuena Trebarh
1 hour -
There is nothing new in what Alan intends to do to fight corruption – NPP General Secretary
1 hour -
NHIA waives enrolment fees for SSNIT contributors
2 hours -
Pre-diagnosis drug use not good preventive strategy – Physician cautions
2 hours -
Ghana was already in a bad situation before Covid-19 – Kofi Adams
2 hours -
The conundrum of data privacy protection law
2 hours -
Cement manufacturers must collaborate with government to regulate pricing – Alex Dodoo
3 hours -
My company received 28.7% of the €2.37m ambulance deal – Richard Jakpa
3 hours -
More teachers benefit from One Teacher One Laptop Programme in Greater Accra
3 hours -
‘Pleasant, focused and goal-oriented, she was a consummate professional’ – Mahama on Mawuena Dumor
3 hours -
We mustn’t downplay the importance of debt restructuring – Danquah Institute
4 hours -
‘Tetalestai’ – A note to Mawuena Adzo Dumor by Esther Cobbah
4 hours