Ghana’s return to the domestic bond market following its debt restructuring programme is a sign of renewed investor confidence and a major step in the country’s economic recovery, Presidential Advisor on the Economy, Seth Terkper, has said.
His comments come amid lingering concerns among some investors and market participants following the previous government’s domestic debt exchange programme, commonly referred to as the “haircut”, which formed part of Ghana’s efforts to restore debt sustainability under the IMF supported programme.
Speaking at the SME Investment Forum organised by the Nkabom Collaborative in partnership with the Association of Ghana Industries and other stakeholders in Accra, Mr. Terkper said Ghana’s re-entry into the domestic debt market should be viewed as a positive development despite public skepticism surrounding the restructuring process.
“I say this knowing that there’s a certain skepticism because of the haircut and because of the defaults and other things, but these are happening in other countries.”
The forum focused on improving access to financing for small and medium enterprises, particularly in Ghana’s agrifood sector, amid concerns over persistent funding gaps affecting businesses.
Mr Terkper argued that while debt defaults and restructurings are often viewed negatively, several countries facing fiscal crises have experienced similar challenges over the years.
He maintained that Ghana’s ability to return to the market signals growing stability and confidence in the economy.
“We are emerging out of the haircut and we are emerging out of the defaults in particular, and we are back, government is back on the Ghana surface.”
The SME Investment Forum seeks to connect investor ready businesses with financial institutions and capital providers to help bridge financing gaps within Ghana’s agriculture and nutrition sectors.
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