Government has said it is setting up a financial stability fund with the help of development partners to provide liquidity support to banks, pension funds, insurance companies, fund managers, and collective investment schemes to ensure that they are able to meet their obligations to their clients.

This comes on the back of government’s debt restructuring deal with the International Monetary Fund (IMF).

As part of the debt restructuring, Finance Minister, Ofori-Atta at a press conference over the weekend said “domestic bondholders will be asked to exchange their instruments for new ones”.

Also, “existing domestic bonds, as of December 1, 2022, will be exchanged for four new bonds maturing in 2027, 2029, 2032 and 2037”.

“The annual coupon on all of these new bonds will be set at 0% in 2023, 5% in 2024 and 10% from 2025 until maturity”, he announced Sunday evening December 4, 2022.

Coupon payments will be semi-annual, he said.

He noted that the government’s commitment to Ghanaians and the investor community, in line with negotiations with the IMF, is to restore macroeconomic stability in the shortest possible time and enable investors to realise the benefits of this debt exchange.

Source: Ghanaweb