Mid-year budget review: Govt announces GHS 12 billion payment to bondholders

Finance Minister Dr. Mohammed Amin Adam has announced that the government has paid GHS 12 billion to bondholders under the Domestic Debt Exchange Programme.

This significant move, highlighted in the mid-year budget review presented to Parliament on Tuesday, July 23, 2024, aims to stabilise Ghana’s economy and restore investor confidence.

Presenting the Mid-year Budget review in parliament on Tuesday (23 July), Dr Adam emphasized the government’s dedication to meeting its financial obligations and ensuring economic stability.

“The payment of GHS 12 billion to bondholders marks a critical step in our efforts to restore confidence in the financial markets and stabilize the economy,” he stated. “This payment is a testament to our commitment to fiscal discipline and prudent financial management.”

The Finance Minister explained how this payment aligns with the broader strategy of economic recovery and growth. The Domestic Debt Exchange Programme, introduced to manage and restructure the country’s debt, has been pivotal in achieving these goals.

“Through this programme, we have not only managed to honor our commitments to bondholders but also created a more sustainable debt profile for the nation,” Dr. Adam explained.

This financial maneuver is part of a broader set of measures aimed at improving the macroeconomic environment.

Dr. Adam highlighted that the government has also made significant strides in stabilizing inflation and the exchange rate. “Since 2022, inflation has dropped by 31 percentage points, and the exchange rate has shown signs of stabilization. These are critical indicators of our economic resilience and recovery,” he noted.

SOURCE: DAILY MAIL GH