‘Bondholders will be paid to the last pesewa, whatever is owed’ – President Mahama

President John Dramani Mahama has assured bondholders that the government will settle all outstanding coupon payments “to the last pesewa.”

Presenting the State of the Nation Address (SONA) in Parliament on Thursday, 27th February, he emphasised that the government is working tirelessly to implement all outstanding structural reforms through the budget to restore fiscal discipline and ensure debt sustainability.

He noted that the government has successfully honoured matured coupon payments of $6.081 billion in cash and 3.46 billion in kind, due in February 2025, fully settling obligations to all Domestic Debt Exchange Programme bondholders.

President Mahama stated:

As we have done previously, we are also building buffers in the sinking fund and adopting prudent debt management practices to ensure the prompt repayment of upcoming domestic and external debt maturities.

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He further assured:

Mr Speaker, the good news is that we have also built additional buffers in the sinking fund to honour the maturing bonds due in July and August, so bondholders can rest assured that they will be paid to the last pesewa, whatever is owed to them.

Additionally, he highlighted that the government is actively preparing for the upcoming fourth review of the IMF-supported programme, scheduled from 2nd to 15th April 2025, with the IMF Executive Board expected to approve it in June this year.

The President also urged business owners and foreign investors to have confidence in the government's ability to turn the country’s economic fortunes around.

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Mr Speaker, since we took office on 7th January 2025, we have upheld our commitment to a fiscal consolidation agenda with a streamlined government. We have eliminated unnecessary expenditures and reduced our reliance on borrowing.

Our prudent debt management practices have led to a substantial reduction in interest rates. The 91-day treasury bill rate, which stood at 28.51% on 6th January 2025, has now dropped to 24.48%.

In his address, he also expressed gratitude to Organised Labour for accepting a recent 10% increase in base pay, assuring them that their current sacrifices will be appreciated in the future.