As part of a public debt restructuring process, the Ghanaian Ministry of Finance plans to convert loans from the Bank of Ghana into bonds. The amount of these loans is estimated at US$3.3 billion.
The bonds, which will be issued through a securitisation process, also cover the interest owed to the Bank of Ghana.
Through this securitisation, Ghana expects to conclude the restructuring of its public debt this quarter and thereby obtain the approval of the International Monetary Fund (IMF), especially as the country faces fiscal and economic challenges, given that Ghana’s public debt has reached 105% of its gross domestic product by 2022.
This process allows the government to ask investors to exchange amounts of government securities for new bonds, while setting a deadline for the exchange.