Ghana Won’t Default on Second Eurobond Coupon Payment in January 2025 – Finance Minister Assures
Finance Minister, Dr Mohammed Amin Adam, has assured Eurobond holders of the Government’s readiness to make its second coupon payment in January next year – 2025.
Making the assertion during the Ministry’s Monthly Economic Update on December 3, 2024, Dr Amin Adam quipped the Government won’t default on its debt obligations to Eurobond holders.
“We are already servicing our debts and the payment is in coupons, already we have made over $520 million in coupon payments to investors this year and the next coupon payment is in January next year, and I can assure investors that the Government won’t default on the January 2, scheduled coupon payment,” he averred.
The $520 million coupon payment comprised $120 million in consent fees to incentivize bondholders who participated in the debt exchange program and $320 million in frozen coupon payments suspended since 2022.
The resumption of payments followed Ghana’s restructuring of $13 billion in Eurobond debt with a 98% participation rate from bondholders.
The Government’s next coupon payment for next year is scheduled for July 2025.
No Intention to Restructure T-Bills
Speaking further at the press briefing, the Finance Minister reiterated the Government’s stance against a restructuring of its short-term debt instruments (T-Bills), asserting the Government has no plans to do so.
“We have said this so many times, but because we restructured the bonds people think the next thing will be the T-Bills, but let me say this again and once and for all that the Government has no intention or plans to restructure T-Bills,” he averred.
Meanwhile, the Government, last Friday fell short of its Treasury bill auction target raising GHS 3.83 billion against a target of GHS 6.09 billion.
The auction marked a GHS 2.26 billion shortfall, the third consecutive undersubscription in eight weeks, after a prior streak of five weeks of consecutive oversubscriptions.
The undersubscription reflects waning investor demand despite rising yields across all three tenors.
The 91-day bill accounted for the bulk of bids, securing GHS 2.94 billion, while the 182-day and 364-day bills garnered GHS 669 million and GHS 216 million respectively.
$360 Million Disbursement Expected This Week
According to Dr Amin Adam, Ghana is expected to receive the recently approved $360 million disbursement by the IMF following the successful third review of the country’s $3bn Extended Credit Facility.
The decision, approved by the IMF’s Executive Board, brings total disbursements to $1.9 billion since the programme’s inception in May 2023.
In a statement, the IMF praised Ghana’s reform efforts, citing progress in growth recovery, fiscal consolidation, and debt restructuring.
The funds are expected to give some respite to the Cedi, possibly helping the local currency to appreciate against major trading currencies such as the dollar, euro, and pound.
