The Finance Ministry says it has settled all outstanding coupons and principal payments up until June 19, 2023 and has sent out instructions for payment of coupons falling due up until July 10, 2023.
This is in light of an impending picket to be undertaken by individual bondholders at the Finance Ministry following complaints that their coupons are yet to be paid as promised.
In a statement, it reiterated government’s commitment to maintaining open and constructive engagement with the CIBG leadership, affirming its determination to fully implement the terms outlined in the Memorandum of Understanding of May 16, 2023.
The Finance Ministry also acknowledged the unwavering support of bondholders during this period of financial strain, expressing gratitude and highlighting the crucial role played by stakeholders in restoring macroeconomic stability, fostering inclusive economic growth, and transforming the nation.
The government and the Coalition of Individual Bondholders’ Groups on May 16 reached an agreement regarding the government’s outstanding domestic debt service obligations.
Per the terms of the MOU, the government undertook to pay all arrears on coupons of bonds maturing by 31st May, 2023, as well as coupons falling due from 1st June, 2023.
The leaderships of the bondholders’ groups had stated that the government had failed to live up to their mandate.
A statement released by the Ghana Individual Bondholders Forum and the Individual Bondholders Association of Ghana expressed their dissatisfaction with the government’s lack of action, stating, “Payment of some bonds has been in default for over one hundred (100) days, and it has been over fifty (50) days since agreeing on terms captured in the MoU with no implementation undertaken nor official communication on a way forward.”
The bondholders, who entrusted their savings to the government, expressed their frustration with the situation, describing the government’s conduct as condescending, insensitive, and disrespectful to its own citizens.
In reaction to the concerns raised, the government has reassured all bondholders of continuing constructive engagement with the leadership of the CIBG, as well as government’s commitment to the implementation of the terms of the MOU.
“The Ministry of Finance takes this opportunity to thank all bondholders for their continuous support during this period of tight liquidity. Government is confident that in working with all stakeholders, we shall restore macroeconomic stability, achieve inclusive economic growth, and transform the Republic,” it concluded.