body-container-line-1

Gov’t announces new terms for the participation of Banks in the Domestic Debt Exchange Programme

By Eric Nana Yaw Kwafo
General News Finance Minister, Ken Ofori-Atta
JAN 24, 2023 LISTEN
Finance Minister, Ken Ofori-Atta

The government has made significant progress in its talks with the Ghana Association of Banks (GAB) in relation to the Domestic Debt Exchange Programme (DDEP).

In a joint press release on Monday by the Ministry of Finance and the Ghana Association of Banks, it said it has made progress on the terms for the participation of Banks in the Domestic Debt Exchange Programme.

The agreement encompasses final improvements to the terms of the DDEP including an agreement to pay a 5% coupon for 2023 and a single coupon rate for each of the twelve (12) new bonds, resulting in an effective coupon rate of 9%.

Whilst there is now clarity on the operational framework and terms of access to the Ghana Financial Stability Fund (GFSF), an agreement has also been reached for the removal or amendment of all clauses in the Exchange Memorandum that empower the Republic to, at its sole discretion, vary the terms of the Exchange.

Meanwhile, the GAB recognises the progress made and notes that participation of its member banks in the DDEP, per the new terms, is subject to each individual bank's internal governance and approval processes, but, in any case, not later than 30th January 2023.

“This is a significant milestone towards addressing our economic challenges, and will thus help to restore macro-economic stability and accelerate Ghana's economic growth. With this achievement, the Government of Ghana reiterates its commitment to concluding the DDEP in time, with all other stakeholders,” the joint press release said on Monday evening.

Below is a copy of the release:

1242023121052-vbqduhgtsn-4bb97341-4564-4db5-80b0-9977fab46d81

Eric Nana Yaw Kwafo
Eric Nana Yaw Kwafo

Journalist

body-container-line