Dr Mohammed Amin Adam, former Finance Minister under the New Patriotic Party (NPP) government, has refuted claims that the NPP defaulted on its debt obligations following the restructuring of the country’s domestic debt.
He emphasized that since the debt restructuring, the NPP government has remained consistent in meeting its coupon payments, ensuring no defaults occurred.
Dr Amin Adam outlined that significant buffers were put in place through Debt Reserves Accounts to support upcoming payments, such as the 4th coupon payment scheduled for February 18, 2025.
According to him, the NPP government honoured substantial payments totalling GHS17.25 billion in Payment-In-Cash (PIC) and GHS9.77 billion in Payment-In-Kind (PIK) to bondholders between 2023 and 2024.
In addition, he noted that individuals who chose not to tender their bonds were still paid GHS515.17 million in coupon payments over various intervals in 2023 and 2024, as per the Memorandum of Understanding (MoU) between the government and the Coalition of Individual Bondholders.
Dr Amin Adam’s statement came in response to a recent announcement by Felix Kwakye Ofosu, spokesperson for President John Dramani Mahama, confirming the successful settlement of the 4th coupon payment by the Mahama administration.
Mr Ofosu’s statement highlighted that the payment of GHS6.081 billion demonstrates the current government’s commitment to upholding its financial responsibilities and restoring investor confidence.
Dr Amin Adam clarified that the NPP government had already made three successful coupon payments in both PIC and PIK formats between August 2023 and December 2024, ahead of the current government’s latest payment.
Here’s a breakdown of the NPP government’s payments:
1st Payment: August 2023
Total Payment: GHS8.55 billion
(PIC: GHS5.42 billion & PIK: GHS3.13 billion)
2nd Payment: February 2024
Total Payment: GHS9.11 billion
(PIC: GHS5.85 billion & PIK: GHS3.27 billion)
3rd Payment: August 2024
Total Payment: GHS9.35 billion
(PIC: GHS5.98 billion & PIK: GHS3.38 billion)
