NPP was going to lose 2024 miserably because of individual bondholders – Kennedy Agyapong

The New Patriotic Party (NPP) was going to be defeated heavily in the 2024 general elections because of the inclusion of individual bondholders in the Domestic Debt Exchange programme, Assin Central lawmaker Kennedy Agyapong has said.

Speaking on the Good Evening Ghana programme on Tuesday, January 31, the NPP flagbearer hopeful for the 2024 elections said “I just read this evening that now they are not going to touch individual bondholders, we thank God, if not we were going to lose miserably. It is good the Finance Minister has made a U-Turn. What is going on in the world doesn’t favour the NPP. The unfortunate thing for the NDC is that they have been in power before and they were not good managers. That is why you need a leader like Kennedy Agyapong.”

The government has extended the deadline for the Domestic Debt Exchange Programme (DDEP) to February 7, 2023.

The Ministry of Finance said in a statement after the meeting with stakeholders that “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.

Also, it said 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 Finance Ministry added.

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.