The government makes good on its debt with the Individual Bondholders’ Forum
The resolution of all outstanding debts owed to participants in the Individual Bondholders’ Forum has been formally notified by the government. It was confirmed in a statement issued by the Finance Ministry on Monday that all past-due coupons and principal amounts up to June 19 had been settled in full and that orders for coupon payments through July 10, 2023, had been sent.
The government has also reaffirmed its dedication to continuing its positive conversation with the Coalition of Individual Bondholders Groups (CIBG) leadership.
It has highlighted how committed it is to carrying out the agreements made in the Memorandum of Understanding (MOU) with the bondholders.
The Ghana Individual Bondholders Forum and the Individual Bondholders Association of Ghana, which make up the CIBG, previously threatened to protest outside the Finance Ministry in order to demand payment of unpaid principal and coupons. Their displeasure was caused by the government’s disregard for the MOU’s agreed-upon payment schedule.
However, the government has succeeded in paying all arrears pertaining to coupons for bonds maturing on or before May 31, 2023, as well as coupons due starting on or after June 1, 2023, in accordance with the conditions outlined in the MOU.
The Ministry of Finance thanks every bondholder for their steadfast support during this time of limited liquidity. The Finance Ministry reported that the government “remains optimistic that by working cooperatively with all stakeholders, we will achieve inclusive economic growth, restore macroeconomic stability, and transform the Republic.
The government’s declaration is a step in the right direction toward allaying individual bondholders’ worries and ensuring that agreed-upon financial commitments are met.
The Coalition of Individual Bondholders Groups members temporarily halted their scheduled picketing at the Finance Ministry’s offices in order to demand payment of their unpaid principal and coupons.
The Ghana Individual Bondholders Forum and the Individual Bondholders Association of Ghana, which make up the group, had already bemoaned the government’s disregard for a Memorandum of Understanding intended to oversee the agreed-upon payment arrangement.
The decision was made despite the group’s warning that it would picket every day from today, July 11, until its complaints were resolved.
“Victory has been brought to our doors with the Government announcing at 11:40 pm yesterday that it will pay all outstanding principal and coupons and make good on its commitment to uphold the MoU of May 16th 2023.”
The joint steering committee of the IBF and IBHAG has agreed to halt the march and picketing until the government honors its commitment once more in light of this development. We still feel outraged, but we’ve made the decision to restrain our anger, so long as the government continues to fulfill its promises on time, the group stated in a statement.
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