The Ministry of Finance (MoF) has strongly refuted recent claims suggesting that it is engaging in debt restructuring with private banks and local contractors. This denial follows multiple reports that alleged ongoing discussions regarding the restructuring of debts involving these parties.
In an official statement released on Monday, the MoF emphasized that no such restructuring plans have been considered or implemented. “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 statement read.
The Ministry clarified that these rumors stemmed from a misunderstanding during the Monthly Press Briefing on the Economy held on August 29, 2024. At the briefing, a question was raised regarding the potential restructuring of external commercial debt. However, this was misinterpreted as an indication that the government intended to restructure its obligations to local contractors.
To set the record straight, the Ministry outlined that the restructuring efforts discussed were specific to the reorganization of Ghana’s debt stock, which consists mainly of loans and bonds. The liabilities owed to domestic contractors are not loans or bonds; instead, they are payment claims and therefore do not fall under the category of debts eligible for restructuring.
The Finance Ministry further highlighted that at no point had it engaged with contractors to discuss restructuring their payments. This statement was supported by recent interviews with local contractors who confirmed that they had not been approached or involved in any debt restructuring talks.
The Ministry also clarified that the completed Domestic Debt Exchange Programme (DDEP) only pertained to domestic bonds held by the Central Bank, Pension Funds, and retail debt investors. There was no inclusion of payments owed to contractors in this program. The restructuring efforts have focused solely on domestic bonds without any mention of contractor payments.
Since the completion of the DDEP, the Ministry has made substantial progress in restructuring external debts. Key achievements include finalizing a Memorandum of Understanding (MOU) with the Official Creditor Committee under the G20 Common Framework and initiating the Consent and Exchange Solicitation process for Eurobond debt.
The Ministry reiterated that its commitment to transparency and effective communication remains unwavering. It assured the public that any decisions or changes regarding the country’s financial policies would be conveyed through official channels to prevent further misunderstandings or misrepresentations.
This clarification by the Ministry of Finance aims to quash the speculations circulating about potential debt restructuring with local contractors and private banks, which had caused concern among stakeholders and the public. The Ministry assured that its focus continues to be on managing the country’s financial stability and ensuring that all obligations are met in a timely and efficient manner.
Moving forward, the Ministry is committed to upholding the integrity of its financial strategies, working collaboratively with international partners, and ensuring that its debt management practices remain transparent and in line with international standards.
