According to NSEMGH, the government intends to stop paying interest to local bondholders and take a 30% haircut on foreign bonds.
After the 2023 budget was unveiled, John Kumah, the deputy finance minister, exclusively told JoyNews,monitored by NSEMGH, that domestic bondholders would get no interest for 2023 as a result of the debt restructuring plan.
They will only receive 5% interest in the second year and an additional 10% interest in the third.
Only in 2026 may domestic bondholders anticipate collecting their full interest.
The principal won’t be impacted by the arrangement.
The government is recommending a 30% haircut on both principle and interest for holders of foreign bonds.
Mr. Kumah claims that information about the restructuring would soon be made available to investors.
He claims that before the year is through, the government wants to come to a deal with investors.
He added that the administration will present a new law to Parliament in the coming weeks that will change the conditions of all government bonds in order to make the restructuring arrangement legitimate.
Dr. Cassiel Ato Forson, the NDC minority side’s spokesperson on finance, responded to the information by saying that the minority side will reject any attempt by the government to enact legislation that would make the restructuring arrangement lawful.
Government cannot participate in an International Monetary Fund (IMF) programme without making a deal to reduce the nation’s debt to levels that are manageable.