Gov’t to convert $3.3bn BoG loan to bonds

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

This move would make the central bank the largest holder of domestic government securities, while also exposing it to ongoing debt restructuring.

The bonds, to be issued by the finance ministry, will also cover interest owed to the Bank of Ghana.

The government’s 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.

The restructuring involves asking investors to swap $11.2bn worth of local government securities for new notes with less favorable terms.

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.