Debt-restructuring is inevitable - Terkper | 3News.com

Former Finance Minister Mr Seth Terkper has indicated that debt restructuring in Ghana is unavoidable given the spending that have been engaged in by the government over the period.

Ghana has commenced discussions with domestic bondholders on a restructuring of its local-currency or cedi debt as part of plan to secure a $3 billion loan from the .

Bloomberg reported that the nation’s largest debt investors including local banks and pension funds are preparing to engage in discussion on debt reorganization that could entail extension of maturities and haircuts on principal and interest payments, according to people familiar with the matter, who asked not to be identified because they are not authorized to speak publicly.

The restructuring would be part of a debt-sustainability plan required by the (IMF), the people said, and will include part of the $19 billion Ghana has in outstanding local debt.

Speaking on the Ghana Tonight show on TV3 with Alfred Ocansey, Monday September 26, Mr Terkper said “Debt restructuring at this point is inevitable because if you are having difficulties paying your bills …you have to be smart with your borrowing otherwise, the debts keep increasing

A key prerequisite for a programme is confirmation that Ghana’s debt is on a sustainable path.

“The programme seeks to establish a macro-fiscal path that ensures debt sustainability and macroeconomic stability underpinned by key structural reforms and social protection.