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The Government has extended the Domestic Debt Exchange deadline until February 7, 2023.
On Tuesday, the Finance Ministry announced that the updated Exchange Memorandum would confirm a proposed settlement date of Tuesday, February 14, 2023.
Originally, the programme’s deadline was 4 p.m. today, January 31.
Amidst lots of disagreement following the announcement of DDEP, the Ministry said it “has made significant progress with all stakeholders, including financial sector industry associations and representative groups of individual bondholders, regarding their participation in the Programme.”
The Finance Ministry announced updates based on its meeting with stakeholders, and announced that an agreement reached with the Ghana Association of Banks (GAB), Ghana Insurers Association (GIA) and the Ghana Securities Industry Association (GSIA) has led to the revised terms of the exchange being accepted. The revision and final Exchange Memorandum will be released on Thursday, February 2, 2023.
According to the Ministry, “based on the engagements with the representative groups of individual bondholders, the following has been offered and will form part of the new Exchange Memoranda:
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 the government’s debt management Programme.
“With this, the 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,” the Finance Ministry added.
Thanks to the many stakeholders involved since the beginning of the DDEP, the ministry said because of them it made such remarkable progress.
“The Ministry encourages bondholders to begin all administrative processes toward participation in the Exchange, in accordance with the agreements reached.
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Soure: Omanghana.com/SP
