Gov’t extends deadline for Domestic Debt Exchange Programme to February 7

The government has announced the final extension of the date of Ghana’s Domestic Debt Exchange Programme (DDEP).

In a press release issued on Tuesday, January 31, it said the deadline for the programme has been extended to Tuesday, February 7.

The decision has been taken after the Finance Ministry reached an agreement with Individual Bondholders on the back of several engagements to resolve their grievances.

According to the release, all individual bondholders are free not to participate in the programme.

The Finance Ministry further cautions that 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 making available other alternatives to encourage all individual bondholders to participate in the programme.

“All individual bondholders who are below the age of 59 years will be offered instruments with a maximum maturity of 5 years, instead of 12 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 12 years, and a 15% coupon rate.

“Additionally, discussions are being finalised with Organized Labour and Pension Fund Trustees, on a separate arrangement in accordance with the Memorandum ofUnderstanding signed with Organized Labour on 22nd December 2022, and in line with government's debt management Programme,” parts of the release from the Ministry of Finance said.

All bondholders after the Ministry of Finance’s release this evening are encouraged to commence all administrative processes towards their participation in the programme in line with the agreements reached.