Interest payments for domestic bonds for the year 2023 would be zero percent, Finance Minister Ken Ofori-Atta has announced.
Interest payments for 2024 have also been pegged at 5 percent.
In an address, the Minister explained that from 2025, the rate increases to 10%.
“Under the domestic bonds exchange programme, domestic bondholders will be asked to exchange their instruments for new ones. Existing domestic bonds as of 1st December 2022 will be exchanged for a set of four new bonds maturing in 2027, 2029, 2032 and 2037.
“The annual coupon on all these bonds will be set at zero percent in 2023, 5 percent in 2024 and 10 percent from 2025 until maturity… In line with this, treasury bills are completely exempted, and all holders will be paid the full value of their investments on maturity. There will be no haircuts on the principal of bonds, and individual holders of bonds will also not be affected.”
According to him, financial regulators have put in place measures to ensure that the stability of the financial sector is preserved and the impact on investors is minimised.
By: Rainbowradioonline/Ghana
