Government will on Tuesday, February 14, 2023, announce the final terms of the Domestic Debt Exchange Programme following its expiration of the registration on Friday, February 10, 2023.
The government has a hard time convincing domestic bondholders to sign onto the debt exchange resulting in the extension of the deadline five consecutive times.
The announcement of the new terms will mean government has met some of its preconditions for securing financial support from the International Monetary Fund (IMF).
The Finance Minister, Ken Ofori-Atta launched the DDEP on December 5, 2022.
Mr. Ofori-Atta said the objective of the Programme was “to invite holders of domestic debt to voluntarily exchange approximately GH¢137 billion of the domestic notes and bonds of the Republic, including E.S.L.A. and Daakye bonds, for a package of New Bonds to be issued by the Republic.”
He stated that it was time for his Ministry and the Government to take such drastic measures now because “the Government may not be able to fully service its debt down the road if no action is taken.
“The Debt Sustainability Analysis (DSA) demonstrated unequivocally that Ghana’s public debt is unsustainable, and that the Government may not be able to fully service its debt down the road if no action is taken. Indeed, debt servicing is now absorbing more than half of total government revenues and almost 70% of tax revenues, while our total public debt stock, including that of State-Owned Enterprises and all, exceeds 100% of our GDP. This is why we are today announcing the debt exchange, which will help in restoring our capacity to service debt.”
