The Government has once again extended the deadline for the domestic debt exchange programme it announced in December 5, last year.
The deadline that was fixed for January 16, 2023 has now been rescheduled to January 31, 2023.
This is the third time government has extended the deadline after it extended the December 19 deadline to Friday, December 30, 2022, at 4 pm (GMT) and then to Monday, January 16, 2023, at 4 pm.
This is expected to enable government to deepen stakeholder engagement on the proposed policy.
“The Government has taken the decision to extend the Expiration Date of the Domestic Debt Exchange Programme from Monday, 16. January 2023 at 4:00 p.m. (GMT) to Tuesday, 31. January 2023 at 400 p.m. (GMT) (the “New Expiration Date.),” the Ministry of Finance said in a press release on Monday, January 16.
“The Government has structured the Domestic Debt Exchange Programme as a voluntary exercise, in order to shield domestic bondholders. We will, however, use this period to further engage with stakeholders especially individual bondholders to mitigate any adverse impacts; while we all contribute to overcoming our economic challenges.”
According to the release, important discussions are ongoing with financial institutions in relation to forbearance measures, accounting treatment, as well as the structure and parameters of the Ghana Financial Stability Fund.
Following the first announcement of the Domestic Debt Exchange Programme on December 5, 2022, the Government entered into advanced discussions with multiple stakeholders. These discussions resulted in the amendment of the terms of the offer, which was announced on 24th. December, 2022, to expire on 16. January, 2023.
“A successful Domestic Debt Exchange is critical to advance our economic recovery process, and therefore it is in our common interest to make it work,” the statement admonished.
There has been fierce resistance since the government announced the domestic debt exchange programme. Individual bondholders, organised labour and pensioners among other groups are asking government to exempt them from the debt sustainability programme.
A tweet by the Ministry of Finance explained that, the extension is to rally consensus towards a successful implementation of the programme.
“Building consensus is key to a successful economic recovery for Ghana.”
Building consensus is key to a successful economic recovery for Ghana. Pending further stakeholder engagement with institutional and individual investors, recently invited to join the debt exchange programme, government is extending the expiration of the DDE to Jan 31, 2023.
— Office of the Finance Minister-Ghana (@oofmghana) January 16, 2023
But the Minority in Parliament has asked the Finance Ministry spearheading the programme to suspend it immediately.
“It is already failing and promises to be a failure,” Minority Leader Haruna Iddrisu said at a press conference on Monday. “He should suspend the initiative and engage in deeper consultation and allow for greater consultations.”
Meanwhile, Majority Chief Whip, Frank Annoh-Dompreh has in a tweet warned the government not to take the power of the people for granted.
A good engagement could have avoided this..
— Hon. Frank Annoh-Dompreh (@FAnnohDompreh) January 16, 2023
Don't take the 'power'of the people for granted.
No hard feelings!
Peace. https://t.co/88oRoMtenx