The Ministry of Finance has extended its deadline for the Domestic Debt Exchange Programme (DDEP) to February 7, 2023, as the previous deadline expires.
The extension was made as part of an agreement the government made with the Ghana Association of Banks (GAB), Ghana Insurers Association (GIA) and Ghana Securities Industry Association (GSIA).
In a statement released by the Ministry, it was announced that the extension was made due to developments that have taken place in the programme and that a new revised and final Exchange Memorandum will be released by February 2, 2023.
“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 revised terms are also part of the developments that took place in the debt exchange programme following government’s recent agreement with bondholders and important figures on the banking and insurance sector, with the extension an opportunity for subscribers of the programme to finalize terms with the government.
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.
The government expressed gratitude to bondholders who participated in the programme and urged bondholders to proceed with administration in relation to the programme agreements.
“7. The Government appreciates the cordial engagements with the various stakeholders since the beginning of the DDEP, that have made such remarkable progress possible.
8. All bondholders are hereby encouraged to commence all administrative processes towards their participation in the Exchange, in line with the agreements reached.”
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Story by: Deborah Yakohene | univers.ug.edu.gh
