NPP Paid Over GHS17B to Bondholders and Secured Future Payments – Sticker
Stephen Amoah outlines the NPP administration's efforts to settle bond payments and secure financial stability for the future
- GHS17.25 billion paid in Principal and Interest Coupon (PIC) and GHS9.77 billion in Payment-in-Kind (PIK) to bondholders
- No defaults on coupon payments since the restructuring of domestic debt
- Buffers created in Debt Reserves Accounts to cover upcoming payments
According to Mr. Stephen Amoah, Member of Parliament for Manhyia and former Deputy Finance Minister, the NPP administration under President Akufo-Addo took decisive steps to manage the nation’s debt before leaving power.
Hon. Amoah said the NPP government made payments on three tranches of bonds and built financial buffers to ensure future debt obligations were met.
He explained that the NDC government, in its current administration, recently announced that the President had directed the Finance Minister to fulfill coupon payments to bondholders under the Domestic Debt Exchange Program (DDEP).
Hon. Amoah clarified that the NPP administration had already paid a substantial GHS17.25 billion in Principal and Interest Coupon (PIC) and GHS9.77 billion in Payment-in-Kind (PIK) to bondholders.
In addition, Sticker pointed out that individuals who did not tender their bonds received a total of GHS515.17 million in coupon payments between 2023 and 2024, in line with a Memorandum of Understanding signed with the Coalition of Individual Bondholders.
Amoah further emphasized that, since the restructuring of domestic debts, the NPP government had not defaulted on any coupon payments. He highlighted that the previous administration had taken proactive steps by setting up Debt Reserves Accounts to build up buffers for future payments, including the upcoming fourth coupon payment.
Amoah outlined the breakdown of the NPP administration’s bond payments as follows:
- 1st Payment (August 2023): GHS8.55 billion (PIC: GHS5.42 billion, PIK deposit: GHS3.13 billion)
- 2nd Payment (February 2024): GHS9.11 billion (PIC: GHS5.85 billion, PIK deposit: GHS3.27 billion)
- 3rd Payment (August 2024): GHS9.35 billion (PIC: GHS5.98 billion, PIK deposit: GHS3.38 billion)
Sticker’s statement serves as a testament to the NPP administration’s financial discipline, underscoring its commitment to addressing the country’s debt obligations while preparing for future challenges.
