MoF Has Made Progress With Banks And Capital Market Players On Debt Exchange – Bright Simons

A Vice President of Imani Africa Bright Simons has said that the Ministry of Finance (MoF) has made progress with banks and capital market players on the debt exchange.

He tweeted on Monday, January 23 that the gap between the two parties on the coupon rate has narrowed.“Still no progress with insurance firms, offshore investment and individuals. Still no reason to adjust the earlier forecast that government will get 30% of the liquidity relief envisaged in the provisional IMF agreement.

“So if the government wants speed, it will have to get less debt relief. But this may delay the IMF board approval as fiscal numbs have to be reworked.”

2/
STILL NO REASON TO ADJUST EARLIER FORECAST THAT GOVT WILL GET 30% OF THE LIQUIDITY RELIEF ENVISAGED IN THE PROVISIONAL IMF AGRMT.
SO: IF THE GOVT WANTS SPEED, IT WILL HAVE TO GET LESS DEBT RELIEF. BUT THIS MAY DELAY THE IMF BOARD APPROVAL AS FISCAL NUMBS HAVE TO BE REWORKED.

— BRIGHT SIMONS (@BBSIMONS) JANUARY 23, 2023

The government is seeking to get the Debt Exchange programme started by end of this month. But it has to conclude the meeting with Individual bondholders on the programme.

The Finance Minister, after the meeting, also said his Ministry expects the joint technical committee to finish its work by 30 January.

Speaking to journalists in Accra on Wednesday, January 18 after a crunch meeting with the bondholders under the umbrella body Ghana Individual Bondholders Forum (IBF) on Wednesday, January 18, he said “I think the clarity for all of us is that it is a voluntary programme. We have anticipated maybe getting up to 80 per cent which will still put us under the parameter, so we are asking everybody to really join.READ ALSO:  $60m Heritage Bank ‘gone but the flame hasn’t quenched’ – Agongo

“The Forum reiterated their concerns which are legitimate concerns for all individuals and for the country at large. In the same way, in which we met members of the Pensions group, we set up a technical committee and they will be meeting immediately [Thursday, January 19], we don’t want to miss the deadline that we have set. We are confident that we will get there.

“The clarity for all of us is that it is a voluntary programme, we have anticipated getting up to 80 per cent which will still put us in the parameter so we are asking everybody to join.

“The government continues to be a government that cares for people, lives and livelihoods as we saw in Covid, we protected and going forward too we will protect but also ensure the Community of the Republic crosses the Jordan safely, that is the challenge we have.”

The Individual Bonholders Forum had petitioned the Minister to be excluded from the Programme, which has been scheduled to be rolled out after Tuesday, January 31.

They claimed they have not been adequately engaged by the government in an attempt to include their bonds in the Programme.

They accused the government of short-changing them especially as the Programme comes at a time a promise was made there will no haircuts to such investments.