Government has paid a total of over GH¢9 billion to bondholders following the restructuring of its domestic debt in the wake of the current global financial crisis.
President Nana Akufo-Addo who announced this yesterday when he presented a message on the state of the nation explained that government successfully paid the first coupon of GH¢2,369.67 million on the new bonds on 22nd August 2023.
This, he noted, was the single biggest payout of domestic payments in a single day for Ghana.
President Akufo-Addo said government also paid GH¢2,060.72 million for the last leg of the domestic debt exchange on 5th September 2023.
“A week ago, last Tuesday, on 20th February 2024, the second coupon of five-point-eight billion cedis (GH¢5,847.72 million) was paid to domestic bondholders. This is the largest coupon paid in a day in Ghana’s history,” President Akufo-Addo further explained.
External debt
President Akufo-Addo expressed gratitude to external creditors for helping Ghana to successfully restructure its debt.
“On the external debt side, we achieved a significant milestone by reaching an agreement with our public creditors, and I will use this occasion to express our appreciation to the Republic of France and the People’s Republic of China, co-Chairs of the Official Creditors Committee, for their positive roles in this achievement.
“We have also intensified our engagement with our external bondholders on the principles of transparency, fair treatment, consistency with the IMF debt sustainability analysis, and good faith. We are focused and committed to accelerating the process.
“Mr. Speaker, we are committed to concluding the external debt restructuring process as soon as possible, so we move past the crisis. This will enable us to complete substantially projects that have been constrained due to financial challenges,” he added.
Priority projects
President Akufo-Addo announced that some of the priority projects have been transferred onto the Government of Ghana (GoG) budget within the same fiscal space to ensure their completion.
“This will enable the Kumasi International Airport, which is some ninety-eight (98%) complete, to be completed by May. Other projects like the Komfo Anokye Teaching Hospital (KATH) Maternity Block in Kumasi, the Takoradi Interchange, the Obetsebi-Lamptey Interchange in Accra, the University of Environment and Sustainable Development Project at Bunso in the Eastern Region, phase two of the construction of roads in Tamale, and the construction of the eighty-four-kilometre (84km) railway line between Tema and Akosombo, would also be completed”, he pointed out.
La Hospital project
President Akufo-Addo has disclosed that an alternative source of funding has also been secured for the reconstruction and completion of La Hospital Project, as a fully functional modern hospital, with the necessary equipment for diagnosis and treatment.
The contractor, he indicated, has been paid an advance mobilisation of 15%, representing some US$7.5 million, and work is has begun.
“The project commenced, effectively, in January this year, and will be completed in twenty-eight (28) months,” President Akufo-Addo concluded.
