The government has extended the deadline for the Domestic Debt Exchange Programme (DDEP) to February 7th, 2023, with new offers to encourage all individual bondholders to participate in the exchange.
The Ministry of Finance, which announced this in a press release, noted that a new settlement date of Tuesday, February 14, 2023, would be confirmed via the revised and final Exchange Memorandum, which would be released on February 2, 2023.
“The Government of Ghana has made significant progress with all stakeholders, including financial sector industry associations and representative groups of individual bondholders, with respect to their participation in the Domestic Debt Exchange Programme (DEP),” it stated.
According to the statement, based on the agreement reached with the Ghana Association of Banks (GAB), Ghana Insurers Association (GIA) and the Ghana Securities Industry Association (GSIA), the new terms of the exchange have been accepted.
“Also, based on the engagements with the representative groups of individual bondholders, the following has been offered and will form part of the new Exchange Memorandum: An affirmation that all individual bondholders are free not to participate; however, upon a successful DDEP there will be very few of the ‘old bonds’ in circulation, and likely limit its tradability.
“In this regard, the government is pleased to make available the following alternative offer to encourage all individual bondholders to participate in the Exchange,” it noted.
It further noted that all individual bondholders who are below the age of 59 years would be offered instruments with a maximum maturity of 5 years, instead of 12 years and a 10 per cent coupon rate; all retirees (including those retiring in 2023) would be offered instruments with a maximum maturity of 5 years, instead of 12 years and a 15% coupon rate.
“Additionally, discussions are being finalised with Organized Labour and Pension Fund Trustees, on a separate arrangement in accordance with the Memorandum of Understanding signed with Organized Labour on 22nd December 2022, and in line with the government’s debt management Programme,” it added.
It stated that these developments necessitated the final extension of the deadline from January 31, 2023, to Tuesday, February 7, 2023.
The Ministry encouraged all stakeholders to participate in the DDEP because it is an essential step towards meeting the country’s debt sustainability targets and restoring macroeconomic stability and economic growth.
Patience Anaadem, ISD