• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Banking & Finance

Ghana: Banks seek shorter maturities in local debt-swap deal

3 years ago
in Banking & Finance, Business, Economy, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
376
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

RelatedPosts

MTN Nigeria Now the Most Capitalized Stock in Nigeria

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

Ghana: Banks seek shorter maturities in local debt-swap deal

Ghanaian banks are holding out for better terms in a domestic bond-exchange program aimed at easing the government’s debt-service burden.

No bank will make a profit in 2022 if they accept the new bonds offered under the exchange, and some face collapse, according to two people familiar with ongoing talks between the government and lenders, who asked not to be identified because they’re not authorized to speak publicly.

Ghana is restructuring most of its public debt, estimated at 467 billion cedis ($39.2 billion) as at the end of September, to qualify for a $3 billion bailout from the International Monetary Fund. Local bondholders have been asked to voluntarily exchange 137.3 billion cedis of debt for new bonds that will pay zero interest in 2023 and less than existing securities in ensuing years.

The repayment of principal for the new bonds won’t start until 2027 and ends in 2038, under current terms. Banks are negotiating for principal repayments to start by 2026 and end around 2033, the people said.

Loss Provisions

Banks, which own about a third of the existing securities, will make losses on the difference between the net present value of their current holdings and the new bonds, the people said. They will have to make provision for the losses in their books to satisfy accounting standards, they said.

While the Bank of Ghana set the risk-weight of new bonds at zero percent for capital adequacy ratio calculations, auditors have disagreed, calling for full provision, the people said.

The Ghana Association of Banks, which declined to comment on the terms under negotiation, got approval from the Ghana Stock Exchange for members to delay filing 2022 financial statements by a month to April 30, it said in a statement Thursday.

A finance ministry spokesperson declined to comment.

Citigroup Inc. estimates net-present-value losses for bondholders of as much as 77% in 2023, it said in a Jan. 4 note to clients.

Ghana is “confident” it will reach an agreement with banks and close its debt exchange offer on Jan. 31, Finance Minister Ken Ofori-Atta said in an interview with Accra-based Joy News late Thursday. He also said the zero-coupon in 2023 was being reconsidered.

The government is targeting 80% participation in the domestic debt swap program. It’s also engaging with bilateral creditors through the Paris Club to reach a restructuring deal by the end of February, and it’s in separate talks with holders of external debt to restructure eurobonds.

Over the next month, Ghana aims to make enough progress to go to the IMF Executive Board in March to secure a final approval for its program, Ofori-Atta said. The country seeks to lower its public debt from an IMF estimate of 105% of gross domestic product in 2022 to 55% by 2028.

Since Ghana launched its exchange program on Dec. 4, there’s been pushback from several investor groups, resulting in three deadline extensions so far. The government has set up a 15 billion cedi fund to support the banking sector.

Source: bloomberg
Via: norvanreports
Tags: EurobondsGhana: Banks seek shorter maturities in local debt-swap dealGhanaian banksIMFlocal debt-swap deal
No Result
View All Result

Highlights

Europe’s Energy Future Hinges on Global Powers

US Companies Cut Investments in China to Record Lows, Here’s Why

How AI is Rewriting and Enhancing Water Risk Management

SheFarms Broiler Edition Kicks Off in Greater Accra

PharmAccess Ghana, Healthcare Federation of Ghana sign SafeCare License Agreement; to use Newest ISQua-Certified Version 5

Tanzania Sink Burkina Faso to Delight Home Crowd In TotalEnergies CHAN 2024 Opener

Trending

Features

MTN Nigeria Now the Most Capitalized Stock in Nigeria

August 3, 2025

MTN Nigeria Now the Most Capitalized Stock in Nigeria MTN Nigeria has surged to become the most...

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

August 3, 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

August 3, 2025

Europe’s Energy Future Hinges on Global Powers

August 3, 2025

US Companies Cut Investments in China to Record Lows, Here’s Why

August 3, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.