Government has indicated in clear terms that, there would be no room for bondholders who have signed on to the Domestic Debt Exchange Programme (DDEP) to change their position .
A total of GH¢82.99 billion in principal was tendered and accepted at the close of the exchange programme on Friday, February 2023. That’s according to government’s communication.
The programme faced and even continue to encounter some level of protests from some groups including individual as well as pensioner bondholders who refused to subscribe to the policy.
Nonetheless, government said a substantial majority of the bonds that eligible holders had tendered would support the government to implement its measures to take Ghana out of the current economic crisis.
Now the doors have been closed to those who wish to join the programme. Those who took part, can’t also go back.
“As the Exchange period has expired, no new tenders will be accepted, and no revocations or withdrawals are permitted,” the Finance Ministry said in a statement on February 14.
However, government has extended the settlement date of the exchange from the previously announced February 14, 2023 to February 21, 2023, to provide sufficient time to settle the new bonds in an efficient manner.
“This Settlement Date extension is, however, only to process the settlement of the New Bonds. The issue date, interest accrual schedules and payment schedules for the New Bonds will be adjusted to reflect the actual Settlement Date,” the statement said.
In an earlier statement issued by the Finance Ministry, government said outstanding coupons and maturing principals of bondholders who refused to participate in the DDEP would be honoured.
“We would like to stress that, all individual bondholders, especially our Senior Citizens, should rest assured that their coupon payments and maturing principals, like all Government bonds, will be honoured in line with Government’s Fiscal commitments.”
Ghana needed about 80 per cent participation in its DDEP to give assurance of its creditors’ support to make its debt sustainable as it seeks a $3 billion loan support programme with the International Monetary Fund (IMF).
According to government, the approximately GH¢83 billion bonds tendered accounts for more than the 80% target needed for the DDEP.
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