The government has reached an agreement with the Ghana Securities Industry Association (GSIA) on the terms of participation of capital market operators in the Domestic Debt Exchange Programme (DDEP).
In a joint statement issued by the Ministry of Finance and the GSIA on Friday, it indicated that the terms entail extending the improved terms of the DDEP agreed with the banks to all GSIA members.
“Collective Investment Schemes (CIS) and individuals who hold bonds in Trust Accounts with
Securities and Exchange Commission (SEC) approved firms, would be offered any enhanced
commercial terms agreed with, or exemptions granted to, Individual Bondholders.
“The government commits to providing support to GSIA members impacted by the DDEP via both
the liquidity and solvency window of the Ghana Financial Stability Fund (GFSF).
The removal of all causes in the Exchange Memorandum that empowers the government to at its sole discretion, vary the terms of the exchange,” it added.
According to the release, GSIA believed the agreement was necessary to restore market normalcy and confidence in the economy and urged its members to seek all required internal approvals and clients’ consent to participate in the DDEP per the new terms in the updated Exchange Memorandum.
It stated that with the agreement, the government has concluded negotiations with another significant group of bondholders.
“The government views this progress as very important towards restoring macroeconomic stability as we reset the economy on a path of strong growth and economic transformation,” it noted.
Patience Anaadem, ISD