The Government says 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 Domestic Debt Exchange Programme (DDEP).
The Government in a statement said 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 is expected to be released by Thursday 2nd February 2023.
Based on the engagements with the representative groups of individual bondholders, the goverment has offered the following and will form part of the new Exchange Memorandum:
An affirmation that 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 tradability;
In this regard, the Government is pleased to make available the following alternative offer to encourage all individual bondholders to participate in the Exchange: 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;
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.
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 Organized Labour on 22nd December 2022, and in line with government’s debt management Programme.
With this, Government has encouraged all stakeholders to participate in the DDEP, an essential step towards meeting Ghana's debt sustainability targets and restoring macroeconomic stability and economic growth.
These developments according to the statement 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.