Ghana’s commercial creditors agree to exchange their bonds 

Ghana’s commercial creditors are set to exchange their bonds for new ones, beginning this week.

They will exchange their bonds for new ones, which have different maturity dates and different rates of interest.

In all, about 98.6 percent of creditors holding commercial debt of Ghana have agreed on reworking the debt.

President Akufo-Addo, who made this known in an interview with France24 on Friday, October 4, 2024 viewed the development as a sign of the confidence that the debtors have in the Ghanaian economy.

“That 98.6 percent of those holding the commercial debt of Ghana have agreed on the reworking of the debt. That’s what essentially the restructuring is about. They’re going to, as from next week, exchange their bonds for new bonds, which have different maturity dates and different rates of interest,” he said.

According to the President, $13 billion of debt was restructured as a result of this agreement. $5 billion equivalent to 37 percent of the nominal value of the debt has been essentially cancelled, and another $4.3 billion of savings on interest will also accrue during the period.

He explained that, altogether, you’re talking about savings to the Ghanaian exchequer of something in the region of $10 billion.

“That’s a significant amount of money. And what it means is that Ghana’s economy is now back to where it was before the crisis,” he opined.

HANDOVER

Relating the progress made to the chance of his vice president, Dr. Mahamudu Bawumia, taking over from him, President Akufo-Addo expressed optimism. He was confident that despite the economic difficulties, the ruling New Patriotic Party government has not wasted the eight-year mandate.

“I believe that he (Bawumia), first of all, is waging a good campaign. He has a message that is resonating, especially with the young people in Ghana. And secondly, he has a record – a good record to defend,” Akufo-Addo made a case for Bawumia.

Touching on the few sectors the government has made an impact, President Akufo-Addo mentioned that in nearly eight years in office, a lot has been done, including major reforms in education, the health system, road infrastructure and the development of the digital economy.

These sectors, according to the President, are the key ingredients of the Ghanaian economy that have seen significant improvements and developments.

“So, there is a record in which he is campaigning. At the same time, he has also brought some new ideas to the surface, which are ideas especially of how the young people can also now get involved in developing themselves and the nation’s economy. And that is what is giving me confidence that he is going to win. Certainly, that is my hope. But I believe that he will win.

OPPOSITION

He rubbished assertions by the main opposition party that the election might not be fair, citing the way the voter registration exercise is playing out.

President Akufo-Addo said the National Democratic Congress (NDC) had an opportunity at the last Inter-party Advisory Committee to defend their issues but failed to prove the same.

“I think the whole country came to realise that in fact there was very little substance in the claims that the opposition was making,” Akufo-Addo remarked.

He said that the NDC has now gone ahead to say that they will abide by the programme that the electoral commission has laid out.

“I think that that means implicitly that the demands that they were making have been shelved. They have to be shelved because there’s no substance to it,” Akufo-Addo added.

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