President Akufo-Addo has said the implementation of the controversial Domestic Debt Exchange (DDE) Programme is facing some difficulties.[ads2]
Even though the implementation is facing some challenges, the President Akufo-Addo, when speaking at a meeting with the visiting German Finance Minister, Christian Lindner noted that that despite the initial resistance by some stakeholders involved in the Domestic Debt Exchange programme, government is gradually getting the support of all.
“One of the steps in the domestic debt exchange is, unfortunately, facing some difficulties, so it has not been concluded. As quickly as possible we are looking at the committee to ensure that all the stakeholders are well engaged”, he said.[ads3]
The President believes a successful implementation of the programme will ensure that Ghana gets the balance of payment support from the International Monetary Fund (IMF) by March 2023.
Meanwhile, the deadline for bondholders to sign on the programme will expire on Tuesday, February 7, 2023.
This comes after the government, in its attempt to further engage with stakeholders, especially individual bondholders for the fourth time extended the deadline for the Programme from January 31 to February 7, 2023, introducing new terms.[ads4]
Bondholders who are below the age of 59 years will be offered instruments with maximum maturity of five years, instead of 15 years, and a 10% coupon rate; while retirees including those retiring in 2023 will be offered instruments with maximum maturity of five years, instead of 15 years, and a 15% coupon rate.
Government is hoping for an 80% subscription to the programme as it structures domestic debt to achieve 55% debt-to-GDP ratio by 2028, as part of efforts to secure a 3 billion dollar bailout from the IMF.[ads5]
