Ghana government secures GH¢83b in DDE programme

The Government of Ghana secured GH¢83b under the DDE programme

The Government of Ghana has said that the principal amount of GH¢82.99 billion has been tendered and accepted at the closing of the Domestic Debt Exchange Program (DDEP) on Friday, February 2023.

Approximately, GH¢ 83 billion, said a substantial majority of the bonds that have the right to tender and will support the government to take measures to take Ghana out of the current economic crisis.

The government, through the Ministry of Finance, in a release issued to the Ghana News Agency on Tuesday, said: “This result is a significant achievement for the government to fully implement the economic strategy in the post-COVID-19 Economic Growth Program. (PC-PEG ) during the current economic crisis.

This extends the settlement date of the exchange from February 14, 2023 previously announced to February 21, 2023, to provide enough time to complete the new bonds in an efficient manner.

“This Settlement Date extension, however, is only for the settlement process of the New Bonds. The issue date, interest accrual schedule and payment schedule for the New Bonds will be adjusted to reflect the actual Settlement Date,” the statement said.

He added that: “As the Exchange period has expired, no new tenders will be accepted, and no cancellations or withdrawals will be allowed.”

In the midst of new concerns by individual bondholders, especially pensioners, who requested an exemption from the program, the government assured all bondholders that they will honor all coupon payments and maturing principals when due.

“We want to emphasize that, all individual bondholders, especially Senior Citizens, must be assured that the coupon payments and mature principals, like all government bonds, will be honored in line with the government’s Fiscal commitments,” the government said.

He added: “The Government wishes to assure all individual bondholders who choose not to participate that coupon payments and mature principal, like all Government bonds, will be honored in line with the Government’s fiscal commitments.”

The government emphasized that the DDEP has been implemented to help protect the economy and improve Ghana’s capacity to effectively pay off its public debt, as its debt has become unsustainable.

He thanked the bondholders for their overwhelming participation, adding that their support and donations have brought Ghana closer to securing the IMF programme.

Ghana needs about 80 percent participation in the DDEP to guarantee the support of creditors to keep its debt sustainable as it seeks a $3 billion loan support program with the International Monetary Fund (IMF).

In December last year, Ghana and the IMF reached a Staff Level Agreement (SLA) on economic policies and reforms that will be supported by a new three-year arrangement under the Extended Credit Facility (ECF) worth about $3 billion.

The SLA is subject to the approval of the Management and Executive Board of the IMF and the receipt of the necessary financing guarantees by Ghana’s partners and creditors, therefore, the government launched the DDEP.

If guaranteed, the loan support program will be implemented in line with the government’s Enhanced Domestic Program (EDP) – a 3-year fast-tracked macroeconomic stabilization program, which is to restore investor confidence and achieve fiscal and debt sustainability.

The program will be driven by a mix of structural reforms and robust revenue, expenditure, and funding policies to further enhance economic recovery and transformation efforts under the Ghana COVID-19 Alleviation and Revitalization of Enterprises Support (Ghana CARES) program.

Source: GNA

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