Debt Exchange: Each new revision has made the terms more complex – Bright Simons

Each new revision of the terms of the Domestic Debt Exchange program (DDEP) has made the terms more complex, a Vice President of Imani Africa has said.

In his view, though the government has made concessions, the rush and refusal to co-create prevented broad consensus.

“So come 7th Feb, the majority of pensioners, overseas holders & individuals will not sign on. Participation will thus be < ~70%,” he tweeted.

The government extended the deadline for the debt exchange programme to February 7, 2023, and the settlement was scheduled for February 14, 2023.

In a statement on Tuesday, the finance ministry announced amended offers for individual bondholders who have requested to be exempted.

“…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 traceability,” the finance ministry said.

The amended debt exchange offers individual bondholders aged 59 and below instruments with a maturity of 5 years instead of the 15 years proposed earlier, and a 10% coupon rate.

Retirees including those retiring in 2023 will also be offered instruments with a maximum maturity of 5 years, instead of 15 years, and a 15% coupon rate, according to the statement.

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The government added that discussions are ongoing with Organized Labour and Pension Fund Trustees to agree on suitable terms for their participation in the domestic debt exchange programme.

The government had reached an agreement with bodies including the Ghana Insurers and the Ghana Bankers Associations.

Under the agreement with the insurers, insurance companies will participate in the exchange on similar terms as the banks, a joint statement issued by the Ministry of Finance and the Insurers Association said on Thursday, January 26.

“The government through the solvency window of the Ghana Financial Stability Fund (GFSF) will provide support for the insurance companies that are seriously affected by the DDEP.’

“The objective is to protect jobs and the stability of the Industry,” the statement said.


Regarding the banks, per the new terms, the participation is subjected to individual bank’s internal governance and approval processes.

Government reaches agreement with banks on new terms for debt exchange programme

“This is a significant milestone towards addressing our economic challenges, and will thus help to restore macro-economic stability and accelerate Ghana’s economic growth.

“With this achievement, the Government of Ghana reiterates its commitment to concluding the DDEP in time with all other stakeholders,” a joint statement from the Finance Ministry and GAB noted.

By Laud Nartey||Ghana


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