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Debt exchange programme recorded over 80% participation – Govt

Goverment says the Domestic Debt Exchange Program (DDEP) officially closed on Friday, February 10, 2023, with over 80% participation of eligible bonds.

This was announced in a statement issued by the Finance Ministry on Tuesday, February 14, 2023.

Government in the statement thanked the people of Ghana for their “forbearance and support throughout these very difficult times”.

It also assured bondholders who did not sign up for the programme that it will honour its financial obligations to them.

“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.”

Following agitations and requests for the exemption of some categories of bonds from the debt exchange programme, government reiterated that signing up for the programme was voluntary.

The debt restructuring programme tagged as the Domestic Debt Exchange Programme forms part of the requirements for the Government of Ghana to secure a $3 billion bailout package from the International Monetary Fund (IMF).

Government has already secured a staff-level agreement awaiting the IMF Board’s approval.

Ghana’s debt stock hit GH¢575 billion in November 2022 accounting for 93.5% of the country’s total GDP.

Following an economic downturn and challenges in servicing its debt, government introduced the domestic debt exchange programme to buy time to honour its fiscal obligations.

Government said the country’s economic meltdown will be dire without the debt exchange programme.

“The DDEP is being done to help protect the economy and enhance our capacity to service our public debts effectively. The alternative of not executing the DDEP would have brought grave disorder in the servicing of our national debt and exacerbated the current economic crisis. The Government is, therefore, grateful for the overwhelming participation of all bondholders. Your support and contributions have gotten your country much closer to securing the IMF programme,” the Finance Ministry added in the statement.

Read the full statement below:

 

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