A ranking member on the Finance Committee of Parliament says the country’s creditworthiness will hit a further snag over the government’s proposed debt exchange programme.
Dr Cassiel Ato Forson said rating agencies will soon downgrade the country to further junk status.
The Ajumako Enyam Essiam MP thus asked Ghanaians to brace themselves up for more hardships.
He subsequently expressed sympathies with investors in the country.
Ghana has unfortunately announced a domestic DEBT DEFAULT. Expect rating agencies to downgrade Ghana to D tomorrow!
Finance Minister, Ken Ofori-Atta on Sunday, December 4, announced the government’s domestic debt exchange programme.
These measures include some exemptions and external debt restructuring parameters that will be implemented.
Per his release, treasury bills and individual bondholders will not be affected by this exercise.
Existing domestic bonds as of December 1, 2022, will be exchanged for a set of four new bonds maturing in 2017, 2029, 2032 and 2037.
“The annual coupon on all of these new bonds will be set at 0% in 2023, 5% in 2024 and 10% in 2025 until maturity.
“Coupon payments will be semi-annual,” the Minister said.
Meanwhile, Ken Ofori-Atta assured us that there will be no haircuts on the principal of bonds.