Domestic Debt Exchange Program: New Deadline Set for Feb 7

Debt Exchange

The government of Ghana has pushed back the deadline for the Domestic Debt Exchange Programme (DDEP) to February 7, 2023. The Finance Ministry revealed in a press statement that a new settlement date of February 14, 2023, will be confirmed through the updated Exchange Memorandum.

Despite some disagreements regarding the DDEP, the Ministry stated that it has made considerable progress working with all involved parties, including financial sector industry associations and representative groups of individual bondholders. Following meetings with stakeholders, the Ministry announced that the new terms of the exchange have been agreed upon and that a final Exchange Memorandum will be released on February 2, 2023.

According to the Ministry, individual bondholders have the option not to participate, but if the DDEP is successful, the number of old bonds in circulation will decrease and limit their tradability. To encourage participation, the government is offering two alternative options: those under 59 years old will receive instruments with a 5-year maturity and a 10% coupon rate, and retirees will receive instruments with a 5-year maturity and a 15% coupon rate. Discussions with Organized Labor and Pension Fund Trustees are also being finalized for a separate arrangement in line with government debt management.

The Finance Ministry believes that participating in the DDEP is crucial for meeting debt sustainability goals and restoring economic stability and growth. As a result, the deadline has been extended from January 31, 2023, to February 7, 2023, and the settlement date confirmed for February 14, 2023, through the new Exchange Memorandum.

The Ministry expressed gratitude to the stakeholders who have helped make this progress possible and encouraged bondholders to start their administrative processes to participate in the exchange in accordance with the agreements reached.

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