{"id":14761,"date":"2023-02-07T19:42:55","date_gmt":"2023-02-07T19:42:55","guid":{"rendered":"https:\/\/www.ghanamma.com\/2023\/02\/07\/govt-to-convert-3-3bn-bog-loan-to-bonds\/"},"modified":"2023-02-07T19:42:55","modified_gmt":"2023-02-07T19:42:55","slug":"govt-to-convert-3-3bn-bog-loan-to-bonds","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2023\/02\/07\/govt-to-convert-3-3bn-bog-loan-to-bonds\/","title":{"rendered":"Gov\u2019t to convert $3.3bn BoG loan to bonds"},"content":{"rendered":"

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Ghana is planning to convert an estimated $3.3bn in loans owed to its central bank into bonds, according to sources familiar with the matter.<\/h2>\n

This move would make the central bank the largest holder of domestic government securities, while also exposing it to ongoing debt restructuring.<\/p>\n

The bonds, to be issued by the finance ministry, will also cover interest owed to the Bank of Ghana.<\/p>\n

The government\u2019s debt to the central bank has increased in recent years, and Ghana is in the process of restructuring its public debt as a condition for a $3bn bailout from the International Monetary Fund.<\/p>\n

The restructuring involves asking investors to swap $11.2bn worth of local government securities for new notes with less favorable terms.<\/p>\n

Ghana has been shut out of international markets since it suspended interest payments on $13bn worth of eurobonds.
The country is also in talks to restructure its bilateral and external debt with the aim of reducing public debt to 55% of GDP by 2028.<\/p>\n

A spokesperson for the central bank declined to comment, while a spokesperson for the finance ministry did not immediately respond to a request for comment.<\/p>\n<\/div>\n