Government has extended the deadline for the registration of its Domestic Debt Exchange Programme (DDEP) to February 7, 2023.
The extension comes after 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 new directives come after the ministry had previously extended the registration deadline for the Domestic Debt Exchange Programme to December 30, 2022 from the original December 19, 2022, and extended it further to January 16, 2023.
The new deadline February 7, 2023, comes after the original deadline for the programme expired at 4pm on Tuesday, January 31.
A statement from the Finance Ministry said they “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.
“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,” the statement added.
According to the statement based on the engagements with the representative groups of individual bondholders, the government has offered to roll out some new exchange memorandum.
“An affirmation that all individual bondholders are free not to participate; However, upon a successful DDEP there will be very few of the ‘old bonds’ in circulation, and likely limit its tradability.
“In this regard, the Government is pleased to make available the following alternative offer to encourage all individual bondholders to participate in the Exchange, All individual bondholders who are below the age of 59 years will be offered instruments with a maximum maturity of 5 years, instead of 15 years, and a 10% coupon rate.
“All retirees (including those retiring in 2023) will be offered instruments with a maximum maturity of 5 years, instead of 15 years, and a 15% coupon rate.”
The statement added that the discussions are being finalised with Organised Labour and Pension Fund Trustees, on a separate arrangement in accordance with the Memorandum of Understanding signed with Organized Labour on 22nd December 2022, and in line with government’s debt management Programme.
With this, Government has encouraged all “stakeholders to participate in the DDEP, an essential step towards meeting Ghana’s debt sustainability targets and restoring macroeconomic stability and economic growth.”