By Roselyn Gayaglo
Government has debunked reports that it is working to restructure debts owed to local contractors.
The Finance Ministry in a statement said there are no such plans on the table. It emphasised that no such restructuring has been contemplated during or even after the domestic debt restructuring programme which ended in October 2023.
According to the Ministry, Domestic Contractors’ liabilities are payment claims, not loans or bonds, and do not fall under the category of obligations eligible for restructuring. It added that the Ministry of Finance has never engaged or invited contractors for debt restructuring discussions.
The statement further noted that the completed Domestic Debt Exchange Programme only covered domestic bonds held by the central bank, Pension Funds, and retail debt investors, with no mention of contractors’ payments.
On the status of the debt restructuring with creditors, the Finance Ministry revealed that it has made significant progress with External Bilateral Creditors. This includes completing an MOU with the Official Creditor Committee under the G20 Common Framework.
Government has also launched the consent and exchange solicitation process for Eurobond debt to try and restructure some 30 billion dollars, which is expected to end on the 30th of this month.
Government has also announced that it will start engaging external commercial creditors to reach a deal in the coming weeks.
