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| Ken Ofori-Atta, Ghana's Finance Minister. |
The Domestic Debt Exchange Programme (DDEP) deadline was
further extended until February 7, 2023 after its expiry today.
The agreement signed with the Ghana Association of Banks (GAB),
Ghana Insurers Association (GIA), and Ghana Securities Industry Association is
also a foundation for this (GSIA).
A revised and final Exchange Memorandum will be made public by
February 2, 2023, 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 agreements the government recently achieved with
groupings of individual bondholders and actors in the banking and insurance
industries, stakeholders were anticipating the government's next step.
The debt exchange deadline will be extended to allow for some
finalised conditions with programme 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.
Additionally, discussions are being finalised with Organized
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 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 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.
The Government appreciates the cordial engagements with the
various stakeholders since the beginning of the DDEP, that have made such
remarkable progress possible.
“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.
Also Read: Ghana Businesses, Jobs and Resource Links.
Also Read: Ghana Current Jobs and Jobs Ghana Blog.
Source:
HR Forum News
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