Investments will be safe despite debt exchange program – Government to investors

Deputy Minister for Finance, Abena Osei-Asare has assured that the government will safeguard the interests of investors even as the nation makes consideration of a debt exchange program.

Ghana’s debt as at the end of September 2022 stood at 467.4 billion Ghana Cedis prompting a path to restore the public debt stock to sustainable levels.

Speaking to EIB parliamentary correspondent, Ibrahim Alhassan after the presentation of the 2023 budget, the deputy minister said Treasury bills are out of the perimeter of debt operations.

“This budget seeks to achieve certain things that we want to bring stability in the economy and also help us get our debt to a sustainable level. In doing so we are looking at debt exchange as the minister announced. This debt exchange is going to be done in conjunction with the regulators and all the relevant stakeholders.

“We haven’t concluded on the debt exchange but one thing I want to put out there is to allay the fears of anybody at all. Is that for all Treasury Bills they are not in the perimeter of the debt restructuring or debt exchange,” Madam Osei Asare assured.

She continued: “All other debt holders should be assured just like the President said that the principal that they have invested in with any debt that they hold at all will not be touched.”

She also stated that what the government is seeking to bring with the program is to bring the debts to a sustainable level so that the market can correct itself and reduce interest rates.

“That will reflect in the inflation and help in bringing down the prices of goods and services as well as food.

“We believe that as we sit together in our tenure, rates that best fit the market that we have now we will be doing ourselves a lot of good in bringing our debt levels down, to make sure that we stabilize the economy,” she added.