Ghana’s domestic debt exchange programme launched

The Minister for Finance, Ken Ofori-Atta has launched Ghana’s Domestic Debt Exchange Programme with the hope of restoring the nation’s capacity to service its debt.

Speaking at the launch at the Ministry of Information on Monday, December 5, 2022, the Finance Minister said the objective of the Programme is “to invite holders of domestic debt to voluntarily exchange approximately GH¢137 billion of the domestic notes and bonds of the Republic, including E.S.L.A.

Ofori-Atta said it was time for his Ministry and the Government to take such drastic measures now because “the Government may not be able to fully service its debt down the road if no action is taken.”

“The Debt Sustainability Analysis (DSA) demonstrated unequivocally that Ghana’s public debt is unsustainable, and that the Government may not be able to fully service its debt down the road if no action is taken.

Indeed, debt servicing is now absorbing more than half of total government revenues and almost 70% of tax revenues, while our total public debt stock, including that of State-Owned Enterprises and all, exceeds 100% of our GDP.

This is why we are today announcing the debt exchange, which will help in restoring our capacity to service debt.”

“Let me repeat this fact as plainly as I can, in this debt exchange, individuals holding domestic bonds will not lose, they will not be affected, and they will retain the value of their investments