Debt Exchange Programme in jeopardy due to complexities
Bright Simons, Vice President of IMANI Africa, is warning about the complexities of the revised terms of Ghana’s Domestic Debt Exchange Program.
Simons argues that the government’s rushed and non-collaborative approach has led to a lack of agreement among stakeholders, and he predicts that participation in the program could be below 70% come February 7, 2022.
The revised terms include no restrictions on selling and state that interest on the new bonds will be paid in cash, with the exception of the new general bonds, which will have a portion of interest deferred until after February 14, 2025.
With only 48 hours until the deadline for the debt exchange program, Simons is questioning the current situation and accusing the government of utilizing hard-line tactics that have put banks and insurance companies in a difficult position.
He also expects that interest payments on old bonds due today and on February 20 may be deferred.
