The Government has amended some terms of the Domestic Debt Exchange Program (DDEP) after consultation with the Ghana Bankers Association.
To date, new bonds under the program have started with a 0% coupon in 2023, 5% in 2024, 10% from 2025, and no interest until 2024.
However, bondholders will be able to enjoy a 5% coupon in 2023 after an agreement between the bankers and the Treasury.
This also translates into an effective interest rate of 9%, according to a joint press release by the Ministry of Finance and the Ghana Bankers Association.
This agreement contains final improvements to the terms of the DDEP.
of. The agreement to pay a 5% coupon and 1 coupon rate for each of the 12 new bonds in 2023 results in an effective coupon rate of 9%.
b. Clarify the operational framework and terms of access to the Ghana Financial Stability Fund (GFSF).
c. Deletion or modification of all provisions of the Exchange Memorandum authorizing the Republic to change the terms of the exchange at its sole discretion.
Banks remain important as they play an important role in the domestic debt exchange program.
Last week, the Ghana Bankers Association asked its members to remain involved in the DDEP until their demands are met.
At the time, the association said it was due to the aforementioned uncertainty and the many uncertainties surrounding the program.
“GAB recognizes the progress made to date and member banks’ participation in the DDE will be subject to each bank’s internal governance and approval process in accordance with the new terms, but in any event not later than January 30, 2023. to,” read out some of the joint statements.
The government has extended the registration deadline for the Domestic Debt Exchange Program to 31 January 2023.