The Ministry of Finance has firmly denied recent media reports suggesting that the government is engaging in debt restructuring with private banks and local contractors.
In a press release issued on Monday, September 9, the Ministry clarified that no such restructuring has been considered during or after the domestic debt restructuring programme, which concluded in October 2023.
The Ministry's statement comes in response to misinterpretations from a recent Monthly Press Briefing on the Economy held on 29th August 2024.
During the briefing, a question regarding external commercial debt restructuring was misconstrued to imply that obligations to local contractors were also being restructured. "Debt restructuring refers to the reorganisation of Ghana's stock of debt, comprising loans and bonds.
Domestic contractors' liabilities, on the other hand, are payment claims, not loans or bonds, and do not fall under the category of obligations eligible for restructuring," the Ministry clarified.
The Ministry emphasised that it has never engaged or invited contractors for debt restructuring discussions, a fact corroborated by contractors in a recent interview with JoyNews.
The completed Domestic Debt Exchange Programme (DDEP) only covered domestic bonds held by the Central Bank, Pension Funds, and retail debt investors, with no mention of contractors' payments.
Following the DDEP, the Ministry has made significant progress in external debt restructuring, including completing a Memorandum of Understanding (MOU) with the Official Creditor Committee under the G20 Common Framework, launching the Consent and Exchange Solicitation process for Eurobond debt, and commencing engagement with external commercial creditors.
The Ministry of Finance expressed gratitude for the public's support during this complex process and urged Ghanaians to disregard the false information circulating about debt restructuring with contractors.