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Ghana Extends Domestic Debt Exchange Registration Deadline

Ghana has announced an extension to the deadline for registering for its domestic debt exchange program.

Accra Center, Ghana
Accra Center, Ghana

The new deadline is January 16th in order to "secure internal approvals" from the financial sector, according to the Finance Ministry. The ministry also revealed that eight additional instruments would be created as part of the debt exchange. This news comes as Ghana negotiates a staff-level agreement for a $3 billion loan package from the International Monetary Fund, which has stated that the deal will only be approved if the country undergoes comprehensive debt restructuring.

Changes Made to Ghana's Domestic Debt Exchange Program

Ghana's Finance Ministry announced changes to the country's domestic debt exchange program in a statement on Saturday. Under the original plan, local bonds were to be exchanged for new ones with maturities ranging from 2027 to 2037, and coupons were set at 0% in 2023, 5% in 2024, and 10% from 2025 until maturity. The ministry has now announced that eight additional instruments will be created, bringing the total number of new bonds to 12, with one maturing each year from 2027 to 2038. It was not specified what coupon values the new bonds would have. The ministry also revealed that individual bondholders will now be invited to participate in the program, despite their initial exemption.

Ghana Seeks to Mitigate Economic Crisis with IMF Loan Package

Ghana is currently negotiating a staff-level agreement for a $3 billion loan package from the International Monetary Fund in an effort to mitigate an economic crisis. The IMF has stated that it will only approve the deal if Ghana undergoes comprehensive debt restructuring. To this end, the country announced a domestic debt exchange program earlier this month with the aim of restructuring external debt with creditors. The Finance Ministry has now extended the registration deadline for the program to January 16th and has made changes to the program, including the creation of eight additional instruments. The ministry expects to reach a domestic debt restructuring settlement no later than January 31st.