Ghana has extended the registration deadline for a domestic debt exchange programme to Jan. 31.
“The extension affords Government of Ghana the opportunity to consider suggestions made by all Stakeholders with the aim of adjusting certain measures,” the ministry said in its statement, without detailing which points had been contentious.
The deadline for the debt swap, initially set for Dec. 19, had previously been extended to Dec. 30 and then to Jan. 16.
The crisis-hit nation launched a domestic debt exchange at the start of December, days before clinching a staff-level agreement with the International Monetary Fund (IMF) for a $3 billion rescue package.
The IMF had said that its board would approve the deal only if Ghana undergoes comprehensive debt restructuring.
The extension came after Accra and the nation’s main unions on Thursday settled on a 30% increase to base pay across the board, effective from Jan. 1, 2023.
Ghana’s government increased the cost of living allowance for public workers by 15% in July, citing the impact of “global challenges” on citizens.
The local cedi dropped heavily against the dollar last year as government spending cuts and central bank interest rate hikes failed to tame inflation, which rose to a new high of 54% last month.
“This extension will provide enough time for the necessary consultations and analysis to be completed to meet the expectations of local and foreign institutional bondholders while preserving the integrity of the Debt Sustainability Analysis and the Staff Level Agreement,” the finance ministry said in its Friday statement.
Under the domestic debt exchange, local bonds will be exchanged for new ones maturing in 2027, 2029, 2032 and 2037, and their annual coupon will be set at 0% in 2023, 5% in 2024 and 10% from 2025 until maturity.
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