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$2.25bn bond was necessary for debt restructuring - BoG Governor

May 17, 2017, 3:10 p.m.

The Governor of the Bank of Ghana, Dr. Ernest Addison has stated that the issuance of the 2.25 billion dollars bond by government was necessary to restructure Ghana’s debt.

Government in April this year issued four bonds totaling 2.25 billion dollars.

The Minority in Parliament has petitioned the United States Securities and Exchange Commission after alleging that the issue was done in secrecy.

The Bank of Ghana has already defended the bond ruling out any wrongdoing.
Speaking at the National Policy Summit, Dr. Addison maintained that the bond was already yielding positive results due to the restructuring.

“We talked the issue of the reprofiling of the debt and that I think is important. It almost like a chicken and egg situation.

You need to in a sense create that fiscal space. That I think we agreed very firmly on that. We have already seen some improvement in terms of the inflation outcomes over the last few months. Also, if you look at the execution of the budget we have seen some improvement in terms of the size of the fiscal deficit”, he said.

“Fortunately for us, this first quarter in terms of the balance of payment and current account we have also seen some improvement in terms of export. They are doing relatively well. We are seeing stronger growth export so the current account is also moving in the right direction,” he added.

Dr. Addison maintained that restructuring the debt has given government some fiscal space to influence all the macroeconomic indicators as they are already beginning to show signs of stability.

“We have also talked about improvement in the reserves of the central bank which has also brought stability on the side of the exchange rates which also feeds into inflation,” he said.