The government has officially announced the resolution of all outstanding arrears owed to members of the Individual Bondholders’ Forum. In a statement released by the Finance Ministry on July 11, it was confirmed that all due coupons and principals up to June 19 have been fully paid, and instructions for coupon payments until July 10, 2023, have been dispatched.
Furthermore, the government has reiterated its commitment to maintaining a continuous and constructive dialogue with the leadership of the Coalition of Individual Bondholders Groups (CIBG).
It has emphasized its unwavering dedication to implementing the terms of the Memorandum of Understanding (MOU) reached with the bondholders.
Previously, the CIBG, comprising the Ghana Individual Bondholders Forum and the Individual Bondholders Association of Ghana, had threatened to stage a protest at the Finance Ministry to demand the settlement of outstanding principals and coupons. Their discontent stemmed from the government’s failure to adhere to the agreed-upon payment plan outlined in the MOU.
However, the government has successfully fulfilled its commitment to pay all arrears related to coupons for bonds maturing by May 31, 2023, as well as coupons due from June 1, 2023, in line with the terms stipulated in the MOU.
“The Ministry of Finance expresses its gratitude to all bondholders for their unwavering support during this period of tight liquidity. The government remains confident that by working collaboratively with all stakeholders, we will restore macroeconomic stability, achieve inclusive economic growth, and transform the Republic,” stated the Finance Ministry.
The government’s announcement signifies a positive step towards addressing the concerns of individual bondholders and ensuring the fulfilment of financial obligations as agreed upon.
Meanwhile, the members of the Coalition of Individual Bondholders Groups suspended their planned picketing at the premises of the Finance Ministry, to demand payments of their outstanding principals and coupons after the payment.
The group, made up of the Ghana Individual Bondholders Forum and the Individual Bondholders Association of Ghana, had earlier lamented that the government had failed to honour a Memorandum of Understanding meant to guide the agreed payment plan.
The group had warned that it will picket each day from today, July 11 till its grievances were addressed, but the decision has been reversed.
“Victory has been brought to our doors with Government announcing at 11:40 pm yesterday of its payment of all outstanding principals and coupons and a commitment to honour the MoU of 16th May 2023.”
“Considering this development, the joint steering committee of the IBF and IBHAG has decided to suspend the march and picketing unless the Government breaches its commitment again. We remain indeed angry, but we choose to exercise extreme self-control, provided that the Government continues to fulfil its obligations promptly as agreed”, the group said in a statement.
