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Ghana Offers Bonds to Pensioners

FILE: Ghana President Nana Akufo Addo. Taken Jan. 16, 2023

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%.

As Finance Minister Ken Ofori-Atta said he expected "full tendering" from banks and other financial institutions that hold Ghana's domestic bonds when the program closes on Feb. 7.

The finance minister's offer came as a group of over-60s were protesting the debt exchange outside the finance ministry in Accra.

Ghana launched a debt swap plan in December as part of attempts to address a spiraling 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.

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.