The Government of Ghana says it has, together with the Ghana Association of Banks (GAB), made “significant progress” on the terms of the participation of banks in the domestic debt exchange programme (DDEP).

This agreement, according to a statement issued on Monday, 23 January 2023 and jointly signed by the two parties, “encompasses final improvements to the terms of the DDEP”.

It includes “an agreement to pay a 5% coupon for 2023 and a single coupon rate for each of the 12 new bonds resulting in an effective coupon rate of 9%, clarity on the operational framework and terms of access to the Ghana Financial Stability Fund (GFSF) and the removal or amendment of all clauses in the Exchange Memorandum that empowers the Republic to, at its sole discretion, vary the terms of the Exchange”.

The Ghana Association of Banks “recognises the progress made and notes that participation of its member banks in the DDEP, per the new terms, is subject to each individual bank’s internal governance and approval processes but, in any case, not later than January 30, 2023”.

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

“With this achievement, the government of Ghana reiterates its commitment to concluding the DDEP in time with all other stakeholders”.