Terms of principal payments and interest on public debt are still being discussed with IMF — Finance Ministry clarifies

The Ministry of Finance has issued a statement to provide an update on the progress of technical work on possible debt operations, as part of ongoing negotiations with the International Monetary Fund (IMF).

According to the Finance Ministry, the Government of Ghana is contemplating a debt operation aimed at alleviating the pressures on the national budget and restoring debt sustainability.

The Ministry notes that this would also open up financing streams and provide a needed balance of payment support from the Fund.

In the release by the Public Relations Unit Ministry of Finance, it says details of the different layers of a debt operation, including the terms of principal payments and interest on the public debt, are still being discussed, taking into account principles of debt sustainability and international best practices.

The Ministry in its release has assured Ghanaians that all measures will be communicated by the Ministry of Finance in due course.

“The Government of Ghana reiterates its commitment to rolling out a lasting solution to the current economic challenges, with the ultimate goal of restoring macroeconomic stability and anchoring debt sustainability,” the release from the Finance Ministry concludes.

This clarification comes on the heels of some media reports suggesting that government intends to put interest payments for domestic bondholders on hold and rather introduce some haircuts on international bonds.

The widespread publications point to debt restructuring that will impose a 30 percent haircut on both the principal and interest of foreign bonds while individuals with local bonds will begin receiving interest in full from 2026 after receiving zero, five and 10 percent of interest in 2023, 2024 and 2025 respectively with the principal going untouched.

Below is a copy of the release: