Ghana pensioners offered 5-year, 15% coupon bonds in debt swap By Reuters

ACCRA (Reuters) – Ghana’s finance minister said on Monday that pensioners were being offered five-year, 15% coupon bonds in a domestic debt exchange, compared to interest rates that he said currently average 18.5%.

Ghana launched a debt swap plan in December as part of attempts to address a spiralling economic crisis, but it has struggled to convince bondholders to register, in part due to a lack of clarity over its terms and concerns about profitability.

Finance minister Ken Ofori-Atta made the remarks to a group of over-60s who were protesting the debt exchange outside the finance ministry in Accra. He said he expected “full tendering” from banks and other financial institutions that hold Ghana’s domestic bonds when the programme closes on Feb. 7.

The West African nation has a staff-level agreement with the International Monetary Fund for a $3 billion rescue package that will only be approved if it undergoes a comprehensive debt restructuring.