The government’s debt swap scheme includes individual bondholders as participants.
As part of the government’s efforts to restructure debt, individuals are now included in the GH137.3 billion domestic bond exchange scheme that has been modified.
This would assist in getting the International Monetary Fund’s (IMF) management and executive board to approve a US$3 billion loan-support program to solve Ghana’s current economic crisis.
Individuals were not included when the exchange program was first introduced in December 2022, but after the government acceded to demands from organized labor to exclude pension funds, it changed the scheme to include individual investments.
Additionally, the Ministry stated: “Offering to holders of Eligible Bonds expiring in 2023, a cash tender fee payment and accrued and unpaid interest on Eligible Bonds.”
Eight further instruments would be added to the new bonds’ structure, making a total of 12 new bonds with one due each year between January 2027 and January 2038.
The Ministry noted that the changes would be fully detailed in an Amended and Restated Exchange Memorandum, which is anticipated to be released the week of December 26, 2022.
According to the Ministry, “Conforming revisions (including adding and changing defined terms) in regard to the aforementioned amendments and modifications to cure ambiguity, omission, defect, error, or inconsistency may be included in the Amended and Restated Exchange Memorandum.”
The government has moved the prior deadline for voluntary participation in the debt exchange scheme from December 30, 2022, to January 16, 2023.
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