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Government honours GH¢5.8bn bond payment - Akufo-Addo

During the State of the Nation address (#2024SONA) on Tuesday, February 27, President Nana Addo Dankwa Akufo-Addo announced that the government has fulfilled its financial commitments by settling the last coupons owed to bondholders, amounting to GH¢5.8 billion.

President Nana Akufo-Addo

The payment marks a significant milestone in the government's efforts to address its financial obligations, particularly in the wake of a domestic debt exchange program initiated in 2023.

This program, aimed at individual and pension bondholders, formed part of the government's strategy to meet revenue targets and reach an agreement with the International Monetary Fund (IMF).

President Akufo-Addo highlighted the magnitude of the payment, stating that it represents the largest coupon paid in a single day in Ghana's history.

He also acknowledged the successful negotiations with bilateral creditors, particularly the Republic of China and France, for their positive contributions to reaching an agreement.

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In addition to the domestic debt exchange, the government is actively engaging with external creditors to ensure the successful implementation of the extended credit facility with the IMF.

President Akufo-Addo emphasized the government's commitment to transparency, fair treatment, and good faith in these engagements, aligning with the principles outlined in the IMF debt sustainability analysis.

However, the announcement of the debt exchange program initially faced resistance from bondholders, leading to months of picketing at the Finance Ministry. Despite these challenges, the program was eventually rolled out.

Groups such as the Ghana Individual Bondholders Forum and the Individual Bondholders Association of Ghana expressed concerns over the government's failure to honor a Memorandum of Understanding meant to guide an agreed payment plan.

Nonetheless, President Akufo-Addo's assurance of continued engagement and commitment to meeting financial obligations aims to allay any remaining concerns and maintain confidence in the government's financial management.

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