You are currently viewing Gov’t to convert $3.3bn central bank loan to bonds
Dr Ernest Addison, Governor of Bank of Ghana

Ghana is planning to convert an estimated $3.3bn in loans owed to its central bank into bonds, according to sources familiar with the matter.

This move would make the central bank the largest holder of domestic government securities, while also exposing it to ongoing debt restructuring.

The bonds, to be issued by the finance ministry, will also cover interest owed to the Bank of Ghana.

The government’s debt to the central bank has increased in recent years, and Ghana is in the process of restructuring its public debt as a condition for a $3bn bailout from the International Monetary Fund.

The restructuring involves asking investors to swap $11.2bn worth of local government securities for new notes with less favorable terms.

Ghana has been shut out of international markets since it suspended interest payments on $13bn worth of eurobonds.
The country is also in talks to restructure its bilateral and external debt with the aim of reducing public debt to 55% of GDP by 2028.

A spokesperson for the central bank declined to comment, while a spokesperson for the finance ministry did not immediately respond to a request for comment.

Source: Graphiconline

DISCLAIMER: The opinions expressed on this platform do NOT represent the views of The Business Executive (TBE) Ltd. or its agents. They represent the views of the author/authors. TBE, therefore, cannot be held responsible for these opinions. 

Get Published!, Send In Your Guest Posts/Articles/Opinion Pieces To editor@thebusinessexecutive.net.

Ayuure Atafori
Author: Ayuure Atafori

Leave a Comment