{"id":6613,"date":"2024-06-25T08:38:09","date_gmt":"2024-06-25T08:38:09","guid":{"rendered":"https:\/\/www.fishfmonline.com\/?p=6613"},"modified":"2024-06-25T08:38:14","modified_gmt":"2024-06-25T08:38:14","slug":"completion-of-debt-restructuring-agreements-have-provided-much-needed-breathing-space-akufo-addo","status":"publish","type":"post","link":"https:\/\/www.fishfmonline.com\/?p=6613","title":{"rendered":"Completion of debt restructuring agreements have provided much-needed breathing space \u2013 Akufo-Addo"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>President Nana Addo Dankwa Akufo-Addo has outlined the completion of three major debt restructuring operations: domestic debt restructuring, external bilateral debt restructuring, and commercial bondholders debt restructuring.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He says that many of the country\u2019s stalled projects will soon resume, thanks to successful negotiations on the restructuring of Ghana\u2019s debt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Speaking at the presentation of credentials to nine newly appointed diplomats at the Jubilee House, the President detailed the positive outcomes of these negotiations and their implications for Ghana\u2019s development.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These efforts have provided much-needed financial relief and set the stage for a renewed focus on critical infrastructure and development projects.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThese agreements have provided much-needed breathing space and put our domestic debt-to-GDP ratio on a clear downward trend,\u201d President Akufo-Addo explained.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe successful negotiations mean that bondholders will provide $4.4 billion in cash flow relief during the IMF Programme, in addition to the cancellation of $4.7 billion of the debt stock,\u201d he added.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The President highlighted the significance of the domestic debt restructuring, which achieved a high participation rate of almost 95%. Coupon rates were reduced from 21% to 9% on average, and maturities were extended, easing the near-term local debt service burden that previously consumed more than 40% of the country\u2019s tax revenues.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This restructuring has set the domestic debt-to-GDP ratio on a path to reach 55% by the end of 2028. Furthermore, the external bilateral debt restructuring has been a crucial milestone in Ghana\u2019s economic recovery efforts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The agreement with bilateral creditors, coordinated through the Ghana Official Creditor Committee (OCC) and co-chaired by France and China, resulted in the restructuring of $5.1 billion of Ghana\u2019s debts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This agreement is expected to provide a cash flow relief of approximately $2.8 billion, or GH\u00a239 billion, in debt service, postponed between 2023 and 2026 to be repaid later at a cheaper interest rate.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"ose-youtube ose-uid-9d1be313e3403af1c84f23ce7f478b33 ose-embedpress-responsive\" style=\"width:400px; height:400px; max-height:400px; max-width:100%; display:inline-block;\" data-embed-type=\"Youtube\"><iframe loading=\"lazy\" allowFullScreen=\"true\" width=\"400\" height=\"400\" src=\"https:\/\/www.youtube.com\/embed\/ftk6DbgeMNo?feature=oembed&color=red&rel=0&controls=1&start=&end=&fs=0&iv_load_policy=0&autoplay=0&mute=0&modestbranding=0&cc_load_policy=1&playsinline=1\" frameborder=\"0\" allow=\"accelerometer; encrypted-media;accelerometer;autoplay;clipboard-write;gyroscope;picture-in-picture clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen referrerpolicy=\"origin\"><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe Agreement with our Bilateral Debt Holders will lead to a cash flow relief of around $2.8 billion or GH\u00a239 billion in debt service,\u201d President Akufo-Addo stated. \u201cThis will enable us to resume and complete many projects that are vital for our nation\u2019s progress.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The successful negotiations have also paved the way for the IMF\u2019s Executive Board to convene and approve Ghana\u2019s Second Review of the Fund Programme, resulting in a further disbursement of $360 million in support of the programme. This additional funding will further bolster Ghana\u2019s efforts to revive its economy and accelerate development initiatives.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One of the most notable achievements in the debt restructuring process is the agreement with commercial bondholders. The restructuring of $13.1 billion of debts resulted in significant savings for the government, including the cancellation of $4.7 billion, or GH\u00a265 billion, from the debt stock. Additionally, Ghana will save $4.4 billion, or GH\u00a260 billion, in debt service, providing further financial relief during the IMF Programme.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe savings include the cancellation of $4.7 billion from the debt stock and $4.4 billion in cash flow relief during the IMF Programme,\u201d President Akufo-Addo explained. \u201cThis comprises principal savings of $1.5 billion and interest savings of $2.9 billion.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The President commended the Ministry of Finance, led by Dr Mohammed Amin Adam, for their efforts in achieving these historic agreements. He emphasized the importance of these milestones in creating the financial space needed to resume and complete stalled projects across the country.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThese achievements are unprecedented in the history of country debt restructurings,\u201d President Akufo-Addo stated. \u201cThe Minister for Finance and his team at the Ministry of Finance are to be warmly applauded for this historic achievement.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With the successful debt restructuring initiatives in place, the government is now well-positioned to focus on revitalizing critical infrastructure and development projects that have been stalled due to financial constraints. These projects, which include improvements in healthcare, education, transportation, and other essential sectors, are vital for Ghana\u2019s progress and development.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The President\u2019s announcement has been met with optimism and renewed hope for Ghana\u2019s economic future. The resumption of stalled projects will not only boost the country\u2019s development efforts but also create jobs and improve the quality of life for Ghanaians.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As Ghana continues on its path to economic recovery, the successful debt restructuring and the resumption of stalled projects signify a significant step forward in the nation\u2019s journey towards sustainable growth and prosperity.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>President Nana Addo Dankwa Akufo-Addo has outlined the completion of three major debt restructuring operations: domestic debt restructuring, external bilateral debt restructuring, and commercial bondholders debt restructuring. He says that many of the country\u2019s stalled projects will soon resume, thanks to successful negotiations on the restructuring of Ghana\u2019s debt. Speaking at the presentation of credentials [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6614,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[9,41],"tags":[1602],"class_list":["post-6613","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-general-news","tag-president-akufo-addo-2"],"_links":{"self":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/6613","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6613"}],"version-history":[{"count":1,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/6613\/revisions"}],"predecessor-version":[{"id":6615,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/6613\/revisions\/6615"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/media\/6614"}],"wp:attachment":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6613"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6613"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}