Following its expiration, the Domestic Debt Exchange Programme (DDEP) deadline has been further extended to February 7, 2023.
The agreement signed with the Ghana Association of Banks (GAB), the Ghana Insurers Association (GIA), and the Ghana Securities Industry Association (GSIA) is also the foundation for this.
A revised and final exchange memorandum will be made public by February 2, 2023, according to the government.
According to a statement from the Finance Ministry, “These developments have necessitated the final extension of the deadline from Tuesday, January 31, 2023, to Tuesday, February 7, 2023, and a new settlement date, which will be confirmed via the new Exchange Memorandum, of Tuesday, February 14, 2023.”
Given the agreements the government recently achieved with groupings of individual bondholders and actors in the banking and insurance industries, stakeholders were anticipating the government’s next step.
The debt exchange deadline will be extended to allow for some finalized conditions with program subscribers.
Meanwhile, the revised terms are as follows:
a. An affirmation that all individual bondholders are free not to participate.
b. However, upon a successful DDEP there will be very few of the ‘old bonds’ in circulation, and this likely limits its traceability.
c. In this regard, the Government is pleased to make available the following alternative offer to encourage all individual bondholders to participate in the Exchange
i. All individual bondholders who are below the age of 59 years will be offered instruments with a maximum maturity of 5 years, instead of 15 years, and a 10% coupon rate
ii. All retirees (including those retiring in 2023) will be offered instruments with a maximum maturity of 5 years, instead of 15 years, and a 15% coupon rate.
In accordance with the Memorandum of Understanding reached with Organized Labour on December 22, 2022, and in accordance with the government’s debt management Program, discussions are also being finalized with Organized Labour and Pension Fund Trustees on a different arrangement.
As a result, the government urges all parties to take part in the DDEP, which is a crucial step in achieving our debt sustainability goals and reestablishing macroeconomic stability and economic growth.
Due to these events, the deadline was finally extended from January 31, 2023, to February 7, 2023, with a new settlement date of February 14, 2023, which will be verified in the new Exchange Memorandum.
Meanwhile, the government expressed its gratitude for the friendly interactions with the numerous stakeholders since the DDEP’s inception, which have led to such significant results.