“It should reinforce expectations that Ghana is on its way to an IMF staff-level agreement. We expect the Ghana cedi to benefit as a result,” said Razia Khan, Chief Africa Economist at Standard Chartered.
“There was little question that Ghana needed LCY (local currency debt) coupon reductions to restore macro sustainability. By excluding retail investors, this is likely to be more politically palatable,” she added.
How the plan will impact individuals is still to be determined as many hold bonds through mutual and pension funds.
Ofori-Atta said the government would set up a financial stability fund with the support of development partners to help domestic financial institutions, including banks and pension funds, weather the swap.
“I say to you, nothing will be lost, nothing will be missing, and nothing will be broken. We will, together, recover all,” he said.