Ghana has extended the registration deadline for a domestic debt exchange programme to Dec. 30, as it considers making some adjustments while it seeks approval for an IMF debt relief programme, the finance ministry said in a statement overnight on Friday.
“The extension… affords Government of Ghana the opportunity to consider suggestions made by all Stakeholders with the aim of adjusting certain measures,” the ministry said in its statement, without detailing which points had been contentious.
The debt exchange programme will now have an expected settlement date of Jan. 6. The ministry had previously set a deadline of Dec. 19 for domestic bondholders to apply for the debt exchange, with new domestic bonds to be issued on Dec. 23.
Ghana, once considered a rising star among emerging market economies, is facing a generational debt crisis. Inflation was above 50% in November, and the government is spending between 70% and 100% of its revenue on interest payments.
On Tuesday, Ghana and the International Monetary Fund announced a staff-level agreement for a $3 billion relief programme, which Reuters first reported late last week.
A debt sustainability analysis concluded earlier this month that Ghana’s debt burden was unsustainable. A comprehensive debt restructuring, including that of foreign debts, is a prerequisite for Executive Board approval, the IMF said on Tuesday.