Government to suspend interest payment

Top Stories

14 hours ago

Government to suspend interest payments for domestic bondholders and impose 30% haircut on foreign bonds

Akoraradio news can confirm that government is set to suspend interest payments for domestic bondholders and impose a 30% haircut on foreign bonds.

Speaking exclusively to akoraradio after the presentation of the 2023 budget, Deputy Finance Minister John Kumah explained that under the debt restructuring arrangement domestic bondholders will receive zero interest for 2023.

In the second year, they will receive only 5% interest and a further 10% interest in the third year.

Domestic bondholders can only expect to start receiving their full interest in 2026.

The arrangement will not affect the principal.

For foreign bondholders, government is proposing a 30% haircut on both principal and interests.

According to Mr Kumah, details of the restructuring will soon be placed before investors.

He says government is hoping to reach an agreement with investors before the end of the year.

He also confirmed that government will be placing before Parliament in the next few weeks a new law to amend the terms for all government bonds to legalise the restructured arrangement.

Reacting to the details, the Minority Spokesperson on Finance, Dr Cassiel Ato Forson said the NDC minority side will reject any attempt by government to pass a law to legalize the restructured arrangement.

Government cannot access an International Monetary Fund (IMF) programme approved by the executive board without an arrangement that brings the country’s debt to sustainable levels.

Comments

Epiroc and Golden Star Wassa Mines Boost Education in Wassa East District*

Epiroc and Golden Star Wassa Mines Boost Education in Wassa East District* In a significant show of support for education and community development, *Epiroc Equipment Ghana Ltd* has made donations of learning and sports materials to selected schools in the Wassa East District of Ghana's Western Region. *This donation was made possible through the facilitation and collaboration of Golden Star Wassa Mines, the mine where Epiroc works as a subcontractor and Setters Investment Ltd as it's Key customer on the mine site.* The beneficiary schools, Kubekor D/A Primary and Juabeng Roman Catholic School, received a comprehensive package of educational materials and sports equipment. The donated items included *branded* exercise books, pens, *ruler* school bags, mathematical sets, water bottles, footballs, jerseys, volleyballs, handballs, football pumps, sanitary pads, whistles, pencils, erasers, A4 sheets and two 4-in-1 printers and other . Madam Rhoda Aboagye, Human Resources ...

Today’s headlines 27/10/23

Twifo Atti-Morkwa Voxy Drivers Appeal to Government: “Don’t Ban Our Livelihoods”*

*Twifo Atti-Morkwa Voxy Drivers Appeal to Government: “Don’t Ban Our Livelihoods”* Toyota Voxy vehicles drivers in the Twifo Atti-Morkwa District have made a passionate appeal to the government to rescind any plans to ban the use of Voxy vehicles for commercial transport, argthe move would cripple their livelihoods. According to the drivers, the Voxy business has become a transformative venture for many families in the district, providing stable income and economic dignity. This is a game-changer for us. It’s what we do to take good care of our families. Thy beg the government not to take this away from us. The drivers insisted that an outright ban would be punitive and counterproductive. Instead, they urged the government to engage directly with vehicle owners to ensure that only competent, experienced drivers are entrusted with the cars. What is most important now is proper vetting. Owners must search for qualified drivers with proven track records. Others recommended a re...

AKORA RADIO

Search This Blog