Govt settles coupon payment to bondholders

The Ministry of Finance has honoured its promise to settle all outstanding coupons and principal payments owed to individual bond holders who did not participate in its Domestic Debt Exchange Programme (DDEP).

A statement released by the Ministry last Tuedady said it had fully paid all coupons and principals maturing up to June 19, 2023.

The ministry said it had also issued instructions for coupon payments until July 10, 2023.

This was in fulfillment of an agreement between the government and the Coalition of Individual Bondholders Groups (CIBG), which comprises members of the Individual Bondholders’ Forum (IBF) and the Individual Bondholders’ Association of Ghana (IBHAG), which was signed in May this year.

In a bid to achieve debt sustainability under the IMF programme, the government, in December 2022, announced a domestic debt exchange programme with the aim of extending the maturity periods of its domestic bonds at reduced coupon rates.

Although the exercise was described as a success with over 85 per cent participation, some individual bond holders decided not to participate in the exercise.

In all, the government swapped 12 old bonds worth GH¢82 billion.

Continuous engagements

The Finance Ministry, in the statement, said it would continue to engage in constructive dialogues with the leadership of the Coalition of Individual Bondholders Groups (CIBG).

It also emphasised its unwavering dedication to implementing the terms of the memorandum of understanding (MoU) reached with the bondholders.

Protest

Previously, the CIBG, which comprises the Ghana Individual Bondholders Forum and the Individual Bondholders Association of Ghana, had threatened to stage a protest at the Finance Ministry to demand the settlement of outstanding principals and coupons.

Their discontent stemmed from the government's failure to adhere to the agreed payment plan outlined in the MoU.

However, the government has successfully fulfilled its commitment to pay all arrears related to coupons for bonds maturing by May 31, 2023, as well as coupons due from June 1, 2023, in line with the terms stipulated in the MoU.

The Ministry of Finance expressed its gratitude to all bondholders for their unwavering support during this period of tight liquidity.

“The government remains confident that by working collaboratively with all stakeholders, we will restore macroeconomic stability, achieve inclusive economic growth, and transform the Republic," the statement noted.