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Debt Exchange is Debt Restructuring whichever way you look at it – Lord Mensah - www.asempanews.com

Debt Exchange is Debt Restructuring whichever way you look at it – Lord Mensah - www.asempanews.com

The Debt Exchange programme that has been launched by the government is Debt Restructuring whichever way one looks at it, a Professor at the University of Ghana Business School, Lord Mensah has said.

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In this context, by means of an Exchange offer, the Government of Ghana has been working hard to minimize the impact of the domestic debt exchange on investors holding government bonds.

Let me repeat this fact as plainly as I can, in this debt exchange individual holders of domestic bonds are not affected and will not lose the face value of their investments.

“Our domestic debt operation involves an exchange for new Ghana bonds with a coupon that steps up to 10% as soon as 2025 (with a first interest payment in 2024) and longer average maturity

For emphasis, this domestic debt exchange programme will not affect individual bondholders.”

Whichever way it is a debt restructuring and that is what we expected.”

Ghana 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 International Monetary Fund.

Original Story on: AsempaNews
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