Government is optimistic all bondholders will sign up for the Domestic Debt Exchange Programme (DDEP) as registration unto the programme expired yesterday.
Minister for Finance Mr. Ken Ofori-Atta said acceptance of the programme will ensure macro-economic stability is restored in the country.
“As a government, our singular motivation for taking this rather difficult road is to restore macro-economic stability, achieve debt sustainability and get the economy fully back on track. We know that these are necessary pre-conditions for creating jobs; safeguarding and enhancing incomes; fostering inclusive growth; and restoring hope to Ghanaians”, the Finance Minister told Ghanaians on Monday.
He also cautioned that non-participation in the Domestic Debt Exchange Programme by individual bondholders will delay government’s efforts at reviving the economy as,” not signing up for the programme will jeopardise the prospects of international financial support and other financial assurances”.
“Considering the importance of a sustained economic recovery backed by an approved IMF programme in the first quarter 2023, it is crucial for groups and individuals to consider the merit of the enhanced DDEP, as well as the need for economic stability; and sign up by tomorrow to make it a successful one,” he added.
Since the announcement of the programme, it has faced stiff opposition with groups like organized labour, the Minority in Parliament and the Ghana Individual Bondholders Forum have raising concerns about how the program will bring frustration on investors and deprive them of their returns on investment.
This pushed government to extend the deadline for four times. During the fourth time government introduced new terms and a final Exchange Memorandum.
In the second Amended and Restated Exchange Memorandum of the Domestic Debt Exchange Programme, government noted that it is not likely to pay a GH¢4.185 billion (an over four billion) 5-year bond maturing on February 6, 2023, a move the Individual Bond Holders Association of Ghana have rejected.
