Government has for the fourth time extended the deadline for the Domestic Debt Exchange Programme (DDEP).
The deadline has been moved from 4pm today, January 31, 2023 to February 7, 2023.
The Finance Ministry announced the new date in a press release on Tuesday.
The initial deadline was December 19, 2022 but was extended to Friday, December 30, 2022, at 4 pm (GMT), then to Monday, January 16, 2023, at 4 pm, which was further extended to January 31.
After the initial protests that greeted the announcement of the debt exchange programme on December 5, 2022, government has made remarkable progress in reaching agreements with some individual bondholders and institutions.
“The Government of Ghana has made significant progress with all stakeholders, including financial sector industry associations and representative groups of individual bondholders, with respect to their participation in the Programme,” the release said.
The Ministry observed that “based on the agreement reached with the Ghana Association of Banks (GAB), Ghana Insurers Association (GIA), and the Ghana Securities Industry Association (GSIA), the new terms of the exchange have been accepted. A revised and final Exchange Memorandum will be released by 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 Memorandum:
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.
It further noted that 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 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 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 Ministry thanked the various stakeholders since the beginning of the DDEP, which it said has enabled it to make 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 Ministry concluded.