Road Contractors Reject Participation in Potential Government Debt Restructuring
The Ghana Road Contractors Association has denied receiving any formal communication from the government regarding a proposed debt restructuring, despite recent statements by Finance Minister Dr. Mohammed Amin Adam.
The minister had indicated that letters had been sent to private banks and contractors, seeking to restructure approximately $2.8 billion in outstanding obligations.
John Afful, the Association’s National Chairman, suggested that the restructuring initiative likely pertains to foreign contractors, as the government’s debt to local contractors is substantially smaller.
Mr Afful noted that the outstanding debt owed to local contractors amounts to less than $1 billion, and the group has yet to receive any formal offer.
In an interview on Thursday, Mr Afful emphasized that the association would not participate in any debt restructuring efforts if approached to do so.
“We haven’t been reached out to and I think what I have read was pertaining to the foreign contractors. We local contractors haven’t been approached and I don’t think we will be involved because the amount we are owed is far, far less than the $2.8 billion. What is outstanding is even less than the $1 billion, so, I don’t think we the local contractors are involved in this.”
“Hopefully, we can’t participate because our debt has been there for a very long time- from 2016 to now. So, I don’t think it will be right for any party to do anything like that. It will be very much unfair to us,” he observed.
A report by the Graphic Newspaper on Thursday indicated a new round of debt restructuring as the government has sent an offer to private banks and contractors who it owes about $2.8 billion for a possible restructuring of the debt.
After successfully negotiating a deal with its bilateral and Eurobond holders, the government has now turned its attention to private banks and contractors.
Responding to a question from the Graphic Business at its monthly economic update, Minister of Finance Dr Mohammed Amin Adam said the government has sent an offer through its advisors.
He said the government has also engaged physically with these creditors in Ghana and China.
“We visited China and we engaged some of them. We have also engaged some here in Ghana and we have shared our offer with them for their consideration.”
