Gov’t slashes interest payments for domestic bonds to 0% in 2023

The government has, however, announced that there will be no haircut on the principal of bonds, adding that individuals with government bonds will have their full investments upon maturity.

In a public address on Sunday, December 4, on the current economic situation, the Finance Minister, Ken Ofori-Atta said the government will ensure that people’s investments are safe.

“Under the domestic bonds exchange programme, domestic bondholders will be asked to exchange their instruments for new ones

Existing domestic bonds as of 1st December 2022 will be exchanged for a set of four new bonds maturing in 2027, 2029, 2032 and 2037.

Mr Ofori-Atta added that the respective financial regulators have put in place measures to ensure that the stability of the financial sector is preserved and the impact on investors is minimised.

“The government recognises that our financial institutions hold a substantial proportion of these bonds, hence the potential impact of this exchange on the financial sector has been assessed by their respective regulators

These regulators have put together appropriate measures to safeguard and minimise the potential impact on the financial sector and to ensure that financial stability is preserved.”