The government has once again promised to pay matured coupons and principal of old bonds beginning March 13, 2023, after reneging on its promise of paying coupons that matured on February 6-20, 2023.

This follows the conclusion of the Domestic Debt Exchange Programme (DDEP).

In view of this, the government amongst others announced that, “in fulfilment of the assurance given by Government to bondholders who did not tender, the Ministry is taking administrative steps to ensure that payments of coupons and principals of the old bonds resume by 13th March 2023”.

The Finance Ministry in a statement on February 27, 2023, explained that new bonds settled and listed will become the new benchmark bonds.

“The newly issued bonds have been settled and listed and will become the new benchmark bonds for the fixed income market. The Ministry of Finance will work with relevant stakeholders, as agreed, to ensure that these new benchmark securities become the basis for deepening the domestic sovereign bond market,” the Finance Ministry stated in the statement.

According to the Ministry, S&P Global Ratings which raised Ghana’s local currency sovereign credit ratings from selective default (SD) to ‘CCC+/C’, acknowledges the successful completion of the DDEP.

The Finance Ministry noted in the statement that, “on Friday, 24th February 2023, S&P Global Ratings raised Ghana’s local currency sovereign credit ratings from selective default (SD) to ‘CCC+/C’. This acknowledges the completion of the DDEP with a successful delivery of new securities to bondholders. In doing so, the selective default is substantially cured”.

The government assured to work together with its external creditors to advance the progress of its external debt treatment.

“The above stated milestone is further expected to accelerate the engagement with our external creditors. The Government of Ghana also takes this opportunity to assure our external creditors of their equal importance to the Republic of Ghana. We will, therefore, continue to work together to advance the progress of our external debt treatment, in order to ensure Ghana’s long-term macroeconomic stability,” the Finance Ministry said in the statement.

A coalition of Individual bondholders groups made up of the pensioner Bondholders Forum, the Individual Bondholders Association of Ghana and the Individual Bondholders Forum earlier called on the Finance Ministry to demand the payment of matured bonds that were not tendered under the DDEP.