Finance Minister Dr. Cassiel Ato Forson has clarified that Ghana’s recent debt-to-GDP reduction was primarily due to a 37% principal haircut imposed on Eurobond holders, rather than any measures by the previous New Patriotic Party (NPP) administration.
As of the end of 2024, Ghana’s debt-to-GDP ratio stood at 65.7%.
Speaking on The Point of View on Channel One TV on Wednesday, March 12, Dr. Forson explained that the decrease was the result of debt restructuring efforts.
“The debt-to-GDP has only come down not because of something that the NPP or the previous administration did. The debt-to-GDP has dropped because last year, the government gave bondholders, Eurobond holders, a 37% principal haircut.
“So the Eurobond at the time, if it was GHS10 billion, GHS3.7 billion was completely wiped out last year, and the interest that had accumulated over the period, another 37% was also wiped out,” he stated.
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