Ghana pushes back deadline for domestic debt swap for third time

The crisis-hit nation launched the debt swap plan in early December, days before reaching a staff-level deal with the International Monetary Fund (IMF) for a $3 billion bailout.

“Building consensus is key to a successful economic recovery for Ghana,” Mr. Ofori-Atta wrote on Twitter, adding that the registration of the debt swap would be extended “pending further commitment. driven by stakeholders”.

The IMF said its board would only approve the deal if Ghana underwent a full debt restructuring.

The deadline for the debt exchange, initially set for December 19, had previously been postponed to December 30 and then to January 16.

Revisions to the initial offering allowed withdrawal exemptions to be granted after a public outcry, but later allowed the inclusion of individual bondholders who were initially exempt.

Unlike previous extensions, Monday’s did not offer additional incentives to bondholders. Without new conditions, investors fear the program will struggle to attract participants.

Meanwhile, repeated extensions and frequent structural changes have done little to encourage participation.

“(Ghana) wants to see voluntary applications and participation in the program, but the sudden and often seemingly unexplained changes in the proposed DDE framework do not inspire confidence,” said Gergely Urmossy, an emerging markets strategist at the Society. General.

Last week, Ghana offered to pay holders of its 2023 bond a 2% cash commission for listing on the exchange, but opposition to the program remained pervasive.

“Ghana has spent a lot of money to fix the problems it had with its banks since the 2014-2015 crisis, so you want to think very carefully to avoid putting them at risk,” said Gregory Smith, manager of emerging markets funds at M&G Investments, based in London.

Last week, Ghana applied to restructure its bilateral debt under the common framework platform backed by the Group of 20 major economies, according to Reuters.

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