Story: Business Desk 

The Ministry of Finance (MoF) has denied claims of debt restructuring with private banks and local contractors.

This follows publications that the government is engaging in debt restructuring with private banks and local contractors.

The MoF in a statement on Monday noted, “the Ministry wishes to state categorically that no such restructuring has been contemplated during or after the domestic debt restructuring program, which commenced in December 2022 and came to a firm close in October 2023.”

The Ministry indicated that during the recent Monthly Press Briefing on the Economy held on 29th August 2024, a question was raised regarding external commercial debt restructuring, the response to which was misinterpreted to mean that obligations to local contractors were going to be restructured.

“To clarify, debt restructuring refers to the reorganisation of Ghana’s stock of debt, comprising loans and bonds. Domestic contractors liabilities, on the other hand, are payment claims, not loans or bonds, and do not fall under the category of obligations eligible for restructuring,” it added.

The Finance Ministry said it had never engaged or invited contractors for debt restructuring discussions, a fact corroborated by contractors in a recent interview with the media.  

“The completed Domestic Debt Exchange Programme (DDEP) only covered domestic bonds held by the Central Bank, Pension Funds, and retail debt investors, with no mention of contractors’ payments.

“Following the DDEP, the Ministry has made significant progress in external debt restructuring, including- Completing an MOU with the Official Creditor Committee under the G20 Common Framework. Launching the Consent and Exchange Solicitation process for Eurobond debt.

“Commencing engagement with external commercial creditors to reach a beneficial solution in the coming weeks,” it stated.