Stakeholders commend finance minister for fulfilling promise to bondholders

Some stakeholders in Ghana’s Economic and financial sector have commended the Minister of Finance Ken Ofori-Atta for fulfilling his promise to the Domestic Bond holders, a move that has finally ended the agitations and complaints that surrounded Government’s Domestic Debts Exchange program.

The Extractive Governance Reporting Centre (EGRC) in a statement acknowledged the sincerity of the finance minister and the officials of the ministry of Finance in their dealings with the domestic and individual bond holders.

On Tuesday 12th July 2023, government announced that it had successfully settled all outstanding arrears owed to individual bondholders.

The Finance Ministry subsequently released a statement confirming the payment of all coupons and principals due up to June 19, as well as sending out instructions for the payment of coupons until July 10, 2023.

The government also reiterated its commitment to maintaining continuous and constructive engagement with the Coalition of Individual Bondholders Groups (CIBG) and implementing the terms outlined in the Memorandum of Understanding (MoU).

The CIBG, comprised of the Ghana Individual Bondholders Forum and the Individual Bondholders Association of Ghana, had threatened to stage a protest at the Finance Ministry to demand payment of their outstanding principals and coupons after the government failed to honor the agreed payment plan.

However, the government has now fulfilled its commitment and paid all arrears on coupons for bonds maturing by May 31, 2023, as well as coupons falling due from June 1, 2023.

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

The government has expressed confidence that by working alongside all stakeholders, they will be able to restore macroeconomic stability, achieve inclusive economic growth, and transform the country.

“The Ministry of Finance takes this opportunity to thank all bondholders for their continuous support during this period of tight liquidity.

Government is confident that in working with all stakeholders, we shall restore macroeconomic stability, achieve inclusive economic growth, and transform the Republic”, the statement stated.

This latest development brings relief to individual bondholders who can now have confidence in the government’s commitment to fulfilling its financial obligations.