The Ministry of Finance has strongly refuted recent media claims that the government is involved in debt restructuring with private banks and local contractors.
In a press release dated Monday, September 9, the Ministry clarified that no such restructuring has been considered either during or after the domestic debt restructuring program, which concluded in October 2023.
This statement was issued in response to misunderstandings arising from a recent Monthly Press Briefing on the Economy held on August 29, 2024. During the briefing, a question regarding external commercial debt restructuring was misinterpreted to suggest that obligations to local contractors were also being restructured.
“Debt restructuring involves reorganising Ghana’s debt portfolio, which includes loans and bonds. However, liabilities to domestic contractors are payment claims and do not qualify as loans or bonds; hence, they are not subject to restructuring,” the Ministry explained.
The Ministry also highlighted that it has never engaged in or invited contractors for discussions on debt restructuring, a point confirmed by contractors in a recent interview with JoyNews.
The concluded Domestic Debt Exchange Programme (DDEP) focused solely on domestic bonds held by the Central Bank, Pension Funds, and retail debt investors, with no implications for contractors’ payments.
Following the DDEP, the Ministry has made significant headway in external debt restructuring, including finalising a Memorandum of Understanding (MOU) with the Official Creditor Committee under the G20 Common Framework, initiating the Consent and Exchange Solicitation process for Eurobond debt, and beginning discussions with external commercial creditors.
The Ministry of Finance thanked the public for their support during this challenging process and urged Ghanaians to disregard the false reports about debt restructuring with contractors.
