After today’s deadline for the government’s Domestic Debt Exchange Programme (DDEP) passed, it was further extended to February 7, 2023.
This is also supported by the agreement struck with the Ghana Securities Industry Association, Ghana Insurers Association, and Ghana Association of Banks.
By February 2, 2023, a revised and completed Exchange Memorandum would be made public, according to the government.
“These developments have necessitated the final extension of the deadline from 31st January 2023, to Tuesday 7th February 2023, and a new settlement date of Tuesday 14th February 2023 that will be confirmed via the new Exchange Memorandum,” a statement from the Finance Ministry noted.
Given the recent agreements the government achieved with associations of individual bondholders and participants in the banking and insurance industries, stakeholders were eagerly expecting the government’s next action.
The debt exchange deadline will be extended to allow for some finalized conditions with program subscribers.
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 likely limit its tradability;
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.
The government is grateful for the friendly interactions with the numerous stakeholders since the DDEP’s inception, which have enabled such outstanding advancement.
“All bondholders are hereby encouraged to commence all administrative processes towards their participation in the Exchange, in line with the agreements reached”, the statement concluded.