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Minority rejects Ofori-Atta’s debt restructuring

The Minority in Parliament has vowed not to accept government’s proposed debt restructuring programme.

This comes after Finance Minister Ken Ofori-Atta announced the programme at a press conference.

But the Minority, led by Haruna Idrissu, believes the policy is unacceptable and cannot be allowed to proceed.

At a press conference on Monday, the Minority Leader, Haruna Iddrisu, said his side will use every legitimate means to oppose the debt restructuring the government has proposed.

“Let me state without any fear of contradiction that the form and structure of the debt restructuring announced by Finance Minister Ken Ofori-Atta this morning are unacceptable to us and we simply will not accept it,” the Tamale South MP said.

Mr Iddrisu wondered why the 2023 budget was silent on the debt structuring policy.

“I want to ask how come this debt restructuring was not included in the 2023 budget.”

The debt exchange programme include some exemptions and external debt restructuring parameters that will be implemented.

The Minister said treasury bills and individual bondholders will not be affected by this exercise.

Domestic bondholders will be compelled to exchange their instruments for new ones.

“Existing domestic bonds as of December 1, 2022, will be exchanged for a set of four new bonds maturing in 2027, 2029, 2032 and 2037,” Ofori-Atta said.

He added that, “the annual coupon on all of these new bonds will be set at 0% in 2023, 5% in 2024 and 10% in 2025 until maturity.



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