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Deadline for Domestic Debt Exchange Programme extended to Feb 7

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Government has extended the deadline for the Domestic Debt Exchange Programme (DDEP) to February 7, 2023.

The Finance Ministry in a press release on Tuesday added that a new settlement date of Tuesday, February 14, 2023, will be confirmed via the new Exchange Memorandum. 

The original deadline for the Programme expired at 4 pm today, January 31.

Amidst lots of disagreements following lots of meetings, government said 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 Finance Ministry announced updates based on its meeting with stakeholders and announces that “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 2nd February 2023.”

According to government, “based on the engagements with the representative groups of individual bondholders, the following has been offered and will form part of the new Exchange Memorandum:  

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 12 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 12 years, and a 15% coupon rate. 

Also, it said discussions are being finalised with Organised Labour and Pension Fund Trustees, on a separate arrangement in accordance with the MoU with Organised Labour on December 22, last year and in line with government’s debt management Programme. 

 “With this, Government encourages all stakeholders to participate in the DDEP, an essential step towards meeting our debt sustainability targets and restoring macroeconomic stability and economic growth. 

“These developments have necessitated the 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,” government added.

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