Ghana’s Finance Minister, Dr. Mohammed Amin Adam, has revealed that Ghana has made an astonishing save of $12 billion through the successful implementation of the Domestic Debt Exchange Programme.
During a panel discussion as part of the 2024 Annual meetings of International Monetary Fund (IMF) and the World Bank Group on Wednesday, October 23, 2024, Dr. Amin Adam stated that the DDEP was a great success, adding that the government through the Ministry of Finance was able to make a lot of savings through the keen implementation of the policies needed to bring the economy back on track.
Dr. Amin Adam said, “The DDEP was a great success and we followed that with the restructuring of our bilateral debt, which was also very successful and this led to a significant savings of about $2.8 billion and then following this, the restructuring of our Eurobonds which is about $13 billion, which was concluded in the first week of this month which is another great success.”
He added that, the DDEP had been an instrumental policy measure in addressing Ghana’s increasing financial difficulties by reducing the load of debts that was swallowing the country gradually.
According to him, the DDEP has created a more sustainable fiscal environment adding that the DDEP, launched in December 2022, was a monumental success that laid the groundwork for broader debt restructuring efforts.
He explained that this programme required domestic bondholders to exchange their existing bonds for new ones with different terms, a critical move aimed at reducing the government’s debt service obligations.
Dr. Amin Adam further revealed that the government is working assiduously to restructure about $2.7 billion with its commercial creditors.
“The DDEP was a great success and we followed that with the restructuring of our bilateral debt, which was also very successful and this led to a significant savings of about $2.8 billion and then following this, the restructuring of our Eurobonds which is about $13 billion, which was concluded in the first week of this month which is another great success.
“The benefits we have derived from this so far include an outright debt cancellation of about $5 billion and another debt service relief of about $4.3 billion and so between the bilateral creditors and the Eurobonds, we are talking about savings of about $12 billion and we think this is a great success and we are still having an outstanding restructuring with our commercial creditors involving about $2.7 billion and we are working very hard to conclude that.”
Source: Kobina Darlington/peacefmonline.com
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