Ken Ofori-Atta seeks to include pension funds in new debt exchange strategy

Ghana's Finance Minister, Ken Ofori-Atta, revealed the government's plans to restructure pension funds and exchange debt in the energy sector as part of their efforts to manage the country's debt during the mid-year budget review in Parliament on July 31, 2023.

The Domestic Debt Exchange Programme (DDEP) has already provided the government with more fiscal flexibility and addressed liquidity constraints. To complete the domestic debt operations, the government intends to discuss with stakeholders about other domestic debt instruments that were excluded from the DDEP perimeter.

Mr. Ofori-Atta clarified that although pension funds were exempted from the main DDEP, the government is still engaging with them on possible solutions.

In addition, the government has launched debt operations for cocoa bills and local US dollar-denominated bonds on July 14, 2023. Settlement for these operations is expected to take place on July 31, 2023.

The government is also working with Independent Power Producers (IPPs) to provide debt relief and financing arrangements that will ensure both debt sustainability for the country and financial sustainability for the energy sector.

These measures are part of the government's commitment to managing the country's debt and ensuring its economic stability.

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