Debts: Government Announces Suspension Of All External Debt Payments Including Eurobonds, Commercial Loans

• The government of Ghana has announced the suspension of all payments of its external debts
• This includes payments on Ghana’s Eurobonds, commercial loans and most of the bilateral debts
• The move follows the launch of the Domestic Debt Exchange programme a fortnight as the country grapples with the current economic crisis

The Ghanaian government has announced the suspension of all its external debt payments including Eurobonds, commercial loans and most of Ghana’s bilateral debts.

A statement signed by the ministry of finance announcing the move said the suspension decision was arrived at, pending an orderly restructuring of the affected obligations.

Suspension Of External Debts Payment Is An Interim Emergency Measure - Finance Ministry

The statement added that the suspension of the debts aims to control the country’s unsustainable debt and said it is an interim emergency measure.

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“We are also evaluating certain specific debts related to projects with the highest socio-economic impact for Ghana, which may have to be excluded. This suspension is an interim emergency measure pending future agreements with all relevant creditors,” parts of the statement read.

The statement noted that the suspension would not affect the payments of Ghana’s multilateral debt, new debts (whether multilateral or otherwise) contracted after December 19, 2022, or obligations related to certain short-term trade facilities.

Government Suspends Domestic Debt Exchange Programme

This follows the launch of the Domestic Debt Exchange Programme on December 5, 2022, which affects the government’s bonds.

Following agitations by some labour unions in the country, the ministry of finance, over the weekend, announced the extension of the programme to December 30, 2022.

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Ghana’s debt crisis could mirror Greek scenario, expert says it will be long and difficult

The debt exchange was to deal with the country’s economic crisis.

Domestic Debt Exchange: Minority In Parliament Vows To Resist Attempts To Restructure Ghana’s Debt

Earlier, YEN.com.gh reported that the minority in parliament says it will employ all legal means available to block the proposed Domestic Debt Exchange programme announced by the minister of finance, Ken Ofori-Atta.

According to the minority leader, Haruna Iddrisu, his side cannot support the policy in its current form.

Addressing the media in Accra on Monday, December 5, 2022, the Tamale South MP insisted that the opposition MPs will not accept the proposed debt restructuring programme saying it cannot be allowed to proceed.

Source: YEN.com.gh