Ghana’s Finance Ministry has dismissed reports suggesting that the government is planning to restructure debts owed to local contractors.

In a statement issued on Monday, 9 September 2024, the ministry clarified that no such plans are being considered.

“There has been no contemplation of any restructuring involving local contractors, either during or after the domestic debt restructuring programme, which began in December 2022 and concluded in October 2023,” the statement said.

Clarification on Recent Comments

The clarification follows remarks made by the Finance Minister, Dr. Mohammed Amin Adam, at a recent press briefing. During a question-and-answer session, Dr. Adam indicated that the government was considering restructuring about $2.8 billion in debts owed to external commercial creditors. However, the Finance Ministry explained that this was misunderstood as a plan to restructure debts owed to local contractors.

The Minister stressed that there are no such plans on the table.

Local Contractors' Liabilities Not Eligible for Restructuring

According to the ministry, the restructuring being discussed pertains to Ghana's broader debt profile, including loans and bonds. It clarified that the debts owed to domestic contractors are classified as payment claims and do not fall under the category of obligations eligible for restructuring.

“The Ministry of Finance has never engaged or invited contractors for debt restructuring discussions,” the statement added.

The ministry further explained that the recently completed Domestic Debt Exchange Programme only covered domestic bonds held by the central bank, pension funds, and retail debt investors, with no reference to contractors' payments.

Progress on Ghana’s Debt Restructuring Efforts

Regarding the ongoing debt restructuring process, the Finance Ministry reported significant progress with external bilateral creditors. This includes a Memorandum of Understanding (MOU) completed with the Official Creditor Committee under the G20 Common Framework.

The government has also launched a Consent and Exchange Solicitation process for its Eurobond debt, aiming to restructure around $30 billion. This process is expected to conclude on 30 September 2024.

Additionally, the government has announced plans to engage with external commercial creditors in the coming weeks to reach an agreement on restructuring.