Accra, Aug. 22, GNA – The Government says it will pay bondholders GHS2.4 billion as the first coupon payment of the Domestic Debt Exchange Programme (DDEP) on Tuesday, August 22, 2023.
The Ministry of Finance made the announcement in a Twitter post on Tuesday, indicating that new bonds currently accounted for dominant instruments in the country’s domestic bond market, laying the basis for rapid recovery.
“In line with government’s commitment to the continued success and credibility of Ghana’s domestic debt operations, instructions have gone out for the settlement of the – GHC2.4 billion first coupon payment of the DDEP, due today,” the Ministry said.
“We remain committed to the success of the new bonds, and again thank all those who participated in the DDEP for their sacrifices,” it added.
Government in February this year restructured some GHS 87.76bn of existing bonds to 16 new bonds with maturing dates ranging from August 2027 to August 2038.
The restructured bonds also had different interest rates of up between five per cent to 15 per cent on the new bonds to be paid semi-annually.
The DDEP was introduced in 2022 by the government of Ghana to manage the country’s domestic debt.
Under the programme, holders of government securities were given the option to exchange their bonds for longer-term bonds with marginal interest rates.
This move was aimed at reducing the Government’s debt servicing costs and improving its debt sustainability in the face of the country’s economic crisis, which resulted in a US$3bn loan-support programme with the International Monetary Fund (IMF).
GNA