Gov’t pays all outstanding principal and coupons; IBF and IBHAG suspend picketing at Finance Ministry

Gov’t pays all outstanding principal and coupons; IBF and IBHAG suspend picketing at Finance Ministry

In a demonstration of its dedication to honoring the agreement between itself and the Coalition of Individual Bondholder Groups (CIBG), the Ministry of Finance has announced the complete payment of all outstanding coupons and principal amounts up until June 19, 2023.

Furthermore, instructions have been issued by the Ministry for the timely settlement of coupons due until July 10, 2023.

The Government of Ghana has further reiterated its commitment to maintaining open and constructive engagement with the CIBG leadership, affirming its determination to fully implement the terms outlined in the MOU of 16th May, 2023.

The Ministry in a statement on Monday, July 10, 2023, acknowledged the unwavering support of bondholders during this period of financial strain, expressing gratitude and highlighting the crucial role played by stakeholders in restoring macroeconomic stability, fostering inclusive economic growth, and transforming the nation.

In response to the government’s commitment, the Individual Bondholders’ Forum (IBF) and the Individual Bondholders’ Association of Ghana (IBHAG) have decided to suspend their planned picketing event, named #OccupyFinance, scheduled to take place today at the Finance Ministry’s forecourt.

This joint decision reflects the recognition of the government’s recent actions, which include the payment of outstanding principals and coupons and a reaffirmation of its dedication to honoring the MOU signed on May 16, 2023.

In a joint statement, the IBF and IBHAG acknowledged the latest developments and expressed their cautious optimism. While acknowledging their lingering concerns, the bondholders’ groups have chosen to exercise restraint and exercise extreme self-control, provided that the government continues to fulfill its obligations promptly and remains committed to the terms agreed upon. However, the statement made it clear that they remain watchful and prepared to take action should the government breach its commitment in the future.

As Ghana takes these critical steps toward financial stability, the resolution of outstanding debt obligations represents a significant stride forward. The collaboration between the government and bondholders has underscored the importance of constructive dialogue and trust-building measures in overcoming economic challenges. As stakeholders cautiously await further progress, this agreement offers a glimmer of hope for the nation’s economic revival and the restoration of investor confidence.