Ghana has extended the deadline to register for its domestic debt exchange programme to Feb. 10 due to technical issues encountered by some bondholders during the registration process, according to a statement from the finance ministry.
The deadline for Ghana’s debt restructuring scheme has been extended for the fifth time as the West African nation strives to secure a $3 billion bailout from the International Monetary Fund. To emerge from an ongoing economic crisis, Ghana has taken measures such as increasing interest rates, reducing spending, and reorganizing its local and foreign debt.
The Ministry of Finance stated that the results of the domestic bidding process would be made public on Feb. 13, with the outcome to be disclosed the next day. Despite several modifications to the original December proposal, several bondholders have not yet participated. Nonetheless, the government is hopeful that 80% of bondholders will participate in the program.
On Monday, two significant bondholder associations advised their members not to register, and a few groups of retirees have protested their inclusion in front of the finance ministry over the past two mornings.
In late December, Ghana excluded pension funds from the wider debt exchange after widespread opposition, but trade unionists remain worried they might be asked to participate again. Additionally, opposition lawmakers have called for parliamentary approval before the plan can commence.
The finance minister has repeatedly emphasized that failing to obtain support from the IMF could have dire consequences for the country’s economy, as consumer inflation reached 52.2% in December.
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