Government has extended the Domestic Debt Exchange Programme (DDEP)
for a final time to make way for all stakeholders to participate in the
programme, based on the ‘last leg’ amendments.
The Ministry of Finance, in a statement, mentioned these amendments
have necessitated a final extension of the deadline from January 31,
2023, to Tuesday, February 7, 2023; and a new settlement date of
Tuesday, February 14, 2023, that will be confirmed via the new Exchange
Memorandum.
The ministry noted that government 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 (DDEP).
The DDEP has been touted as an essential step toward meeting the
country’s debt sustainability targets and restoring macroeconomic
stability and economic growth.
The ministry indicated that based on the engagements with the
representative groups of individual bondholders, a series of offers have
been made which will form part of the new Exchange Memorandum.
It stated that all individual bondholders are free to not
participate; however, it cautioned that upon a successful DDEP there
will be very few of the ‘old bonds’ in circulation, and likely limit
their tradability.
In this regard, government is offering instruments with a maximum
maturity of 5 years instead of 15 years, and a 10 percent coupon rate to
all individual bondholders who are below the age of 59 years.
Further to this, 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 percent coupon rate.
These alternative offers are meant to encourage all individual
bondholders to participate in the Exchange. “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. A revised and final
Exchange Memorandum will be released by Thursday, February 2, 2023,” a
portion of the statement read.
“Additionally, discussions are being finalised with Organised Labour
and Pension Fund Trustees, on a separate arrangement in accordance with
the Memorandum of Understanding signed with Organised Labour on December
22, 2022, and in line with government’s debt management programme,” it
said.
Government has encouraged all stakeholders to participate in the
DDEP, an essential step toward meeting our debt sustainability targets
and restoring macroeconomic stability and economic growth. Meanwhile,
individual bondholders – particularly under the canopy of the Individual
Bondholders Forum (IBF) – have on different occasions stated that they
expect to exempted entirely from the programme.
blogpay
Total Comments: 0