To February 7, 2023, the government has extended the deadline for the Domestic Debt Exchange Program (DDEP).
The Finance Ministry stated in a news release on Tuesday that the revised Exchange Memorandum will affirm the new settlement date of Tuesday, February 14, 2023.
Today, January 31, at 4 p.m., the Program's first deadline expired.
The Ministry claimed it "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 Programme" despite the fact that there was considerable disagreement following the announcement of DDEP.
Following its meeting with stakeholders, the Finance Ministry provided updates and stated that "based on the agreement made with the Ghana Association of Banks (GAB), Ghana Insurers Association The revised exchange conditions have been approved by both the Ghana Securities Industry Association (GSIA) and the parties. By Thursday, February 2, 2023, a revised and final Exchange Memorandum will be made available.
The government encourages qualified bondholders to swap $137.3 billion in domestic bonds and other securities.
According to the Ministry, the following has been proposed and will be included in the revised Exchange Memorandum "based on the interactions with the representative organisations of individual bondholders:
a. A statement stating that each individual bondholder is allowed to decline participation;
b. However, if the DDEP is effective, there won't be many of the "old bonds" left, which would probably restrict their tradeability;
c. To urge all individual bondholders to take advantage of the following alternative offer, the government is happy to make it accessible in this respect.
I. Instruments with a maximum maturity of 5 years instead of 12 years and a 10% coupon rate will be offered to all individual bondholders under the age of 59. II. Instruments with a maximum maturity of 5 years instead of 12 years and a 15% coupon rate will be offered to all retirees, including those retiring in 2023.
Additionally, it stated that negotiations on a separate deal were being finalised with Organized Labor and Pension Fund Trustees in accordance with the MoU with Organized Labor signed on December 22, 2017, and in keeping with the government's debt management programme.
As a result, the government urges all parties to take part in the DDEP, which is a necessary step in achieving our debt sustainability goals and reestablishing macroeconomic stability and economic growth.
The Finance Ministry said, "These events have forced the last extension from January 31, 2023, to Tuesday, February 7, 2023, and a new settlement date of Tuesday, February 14, 2023, which will be verified by the new Exchange Memorandum.
The Ministry expressed gratitude to all parties involved in the DDEP from its inception for helping it achieve such outstanding development.
According to the agreements made, "all bondholders are hereby invited to begin all administrative steps toward their participation in the Exchange."
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