DDEP: Ghana bondholders to receive Gh₵2.4bn payment today

Ghana's Ministry of Finance has announced that the Government is set to pay the first matured coupons on bonds issued under the Domestic Debt Exchange Programme with a payment of about 2.4 billion Ghana cedis by the close of today. This news has been received positively by the market and investors, signaling Ghana's commitment to servicing its debt obligations. Rhode Luemba, Head of Flow Sales, Global Markets at Standard Bank, discussed this development and other impacts on sovereigns on the continent. Rhode Luemba highlighted the significance of Ghana's payment of the coupons, portraying the government as a credible entity capable of meeting its financial commitments. This payment marks a crucial step in Ghana's journey towards gaining credibility through the Domestic Debt Exchange Programme. The compliance with the payment schedule indicates a liquid government that investors can rely on. The discussion shifted to Ghana's ability to uphold future commitments, with Luemba expressing optimism based on measures and timelines defined under IMF supervision. The discipline instilled through this collaboration is expected to guide Ghana in maintaining its financial responsibilities and adhering to restructuring and exchange programmes. However, Luemba acknowledged potential risks in Ghana's path, citing concerns such as high inflation rates, elevated interest levels, and slowed economic growth. Despite these challenges, the positive signals sent to investors through the debt exchange programme are crucial in restoring confidence in the Ghanaian government. Turning attention to Nigeria, Luemba addressed the struggles faced by the oil-producing nation in meeting OPEC quota levels due to declining production rates. Nigeria's failure to capitalize on the current rise in oil prices poses fiscal challenges, necessitating a focus on alternative initiatives like securing international financing. In light of Nigeria's recent deal with Afrexim Bank, where $3 billion was secured to assist the NNPC in settling taxes and royalties, Luemba emphasized the potential benefits of the loan. The influx of dollar liquidity is expected to stabilize the Naira, reduce fuel costs, and support the Nigerian economy amidst deregulation policies. As Ghana and Nigeria navigate their respective financial landscapes, the commitments made by these nations signal a determination to overcome challenges and uphold financial integrity. The positive strides towards debt servicing and liquidity support demonstrate a proactive approach towards economic stability and investor confidence.