In a significant move that underscores its commitment to financial responsibility, the government has announced the successful settlement of all outstanding arrears owed to individual bondholders.
This development, confirmed by the Finance Ministry on July 10, 2023, brings relief to bondholders and reaffirms the government’s dedication to maintaining a healthy and transparent financial environment.
A Commitment Honored
The government’s announcement comes after a period of uncertainty and tension. The Coalition of Individual Bondholders Groups (CIBG), an amalgamation of the Ghana Individual Bondholders Forum and the Individual Bondholders Association of Ghana, had threatened to stage a protest at the Finance Ministry.
The bone of contention was the government’s failure to honor the agreed payment plan, leaving bondholders in a state of financial limbo.
However, the government has now fulfilled its commitment, clearing all arrears on coupons for bonds maturing by May 31, 2023, and coupons falling due from June 1, 2023.
This move not only settles the immediate financial concerns of the bondholders but also sends a strong message about the government’s commitment to upholding its financial obligations.
A Constructive Engagement
The government’s handling of this issue demonstrates its commitment to maintaining continuous and constructive engagement with stakeholders.
The Finance Ministry has expressed gratitude to all bondholders for their unwavering support during this challenging period of low liquidity.
This sentiment reflects the government’s recognition of the crucial role that bondholders play in the country’s financial ecosystem.
A Vision for the Future
The government’s successful settlement of arrears is more than just a financial transaction; it is a statement of intent.
The government has expressed confidence that by working alongside all stakeholders, they will be able to restore macroeconomic stability, achieve inclusive economic growth, and transform the country.
This latest development is a testament to the government’s commitment to fulfilling its financial obligations and maintaining a healthy financial environment.
It brings relief to individual bondholders who can now have confidence in the government’s commitment to upholding its financial responsibilities.
Context
The issue of outstanding arrears owed to individual bondholders has been a matter of concern and contention in Ghana’s financial landscape.
The Coalition of Individual Bondholders Groups (CIBG), comprising the Ghana Individual Bondholders Forum and the Individual Bondholders Association of Ghana, had been advocating for the government to fulfill its financial obligations.
The government’s failure to honor the agreed payment plan had led to growing frustration among bondholders, prompting the CIBG to threaten a protest at the Finance Ministry.
This situation created uncertainty and raised questions about the government’s commitment to financial responsibility.
However, in a positive turn of events, the Finance Ministry released a statement on July 10, 2023, confirming the successful settlement of all outstanding arrears owed to individual bondholders.
This development brings relief to bondholders and restores confidence in the government’s commitment to fulfilling its financial obligations.
The government’s emphasis on maintaining continuous and constructive engagement with stakeholders, as well as its expression of gratitude to bondholders for their support during a challenging period of low liquidity, highlights the importance of collaboration in the country’s financial ecosystem.
Moving forward, the government aims to restore macroeconomic stability, achieve inclusive economic growth, and transform the country by working alongside all stakeholders.
