The Government of Ghana and the Ghana Insurers Association (GIA) have reached an agreement on the participation of insurance companies in the Domestic Debt Exchange Programme (DDEP).
Under the agreement, Insurance companies will participate in the Exchange on similar terms as the Banks.
According to a joint press release from the Ministry of Finance and the Ghana Insurers Association signed by the Minister of Finance, Ken Ofori-Atta, and President of the Ghana Insurers Association, Seth Aklasi, the Government through the solvency window of the Ghana Financial Stability Fund (GFSF) will provide support for the insurance companies that are seriously affected by the DDEP. The objective is to protect jobs and the stability of the industry.
The GIA expressed their delight on this agreement that seeks to protect the members of the insurance industry.
The GIA is happy to reach a deal with the Government that protects its members, but
also enabling the Government to push through the necessary economic reforms at this
The Ministry of Finance highlighted how the agreement with the banking industry has facilitated government’s efforts to complete the Domestic Debt Exchange Programme.
This milestone on the back of the success with the banking industry, has taken the
Government closer to completing the DDEP which is a key factor to restore economic
stability and growth.
Earlier, the Government of Ghana and the Ghana Association of Banks (GAB) had agreement for banks’ participation in the Domestic Debt Exchange Programme which seeks to aid the government in restoring economic stability and growth.
The Government of Ghana and the Ghana Association of Banks agreement includes a payment of a 5% coupon for 2023 and a single coupon rate for each of the twelve (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, and the removal or modification of all clauses in the Exchange Memorandum that empower the Republic to vary the terms of the Exchange at its sole discretion.
Story by : Sammy Danso Eghan | univers.ug.edu.gh