The Government has announced the settlement of holders of pension funds and domestic dollar denominated bondholders under its Domestic Debt Exchange Programme (DDEP).
In a statement, the Ministry of Finance announced that a payment of GHS2,060.72 million was made to holders of exchange bonds in respect of their Treasury Bonds.
Also, a payment of GHS274.91 million was made to holders of exchange bonds in respect of their ESLA Bonds and Daakye Bonds were made.
While no amount was mentioned in respect of US dollar denominated bonds, the Ministry explained that the settlements were made pursuant to the terms and conditions set forth in the Exchange Memorandum dated July 31, 2023.
On the Settlement Date, four (4) Series of New Bonds were issued to Eligible Holders whose tenders were accepted by the Government. Pursuant to the Exchange Memorandum, the principal amount of the New Bonds per holder is composed of the outstanding principal amount of Eligible Bonds tendered by such holder plus any amount of Accrued Interest Payable in respect thereof, and was allocated per holding in equal proportions between New Bonds due 2027 and 2028 pursuant to the Exchange Memorandum.
Meanwhile, the respective allocations between New Bonds due 2027 and 2028 are also distributed between Foreign Exchange Account (“FEA”) new Series and Foreign Currency Account (“FCA”) new Series in proportion with each holding of FCA and FEA Eligible Bonds tendered.
On the Settlement Date, such principal amounts were credited to each holder’s respective securities account at the Central Securities Depository (“CSD”) from which each holder’s Eligible Bonds were tendered.
A Significant Achievement for the Government
The Ministry described the settlements as “a significant achievement for the Government as it pursues its macroeconomic stabilization policies under the IMF- supported Post-COVID-19 Programme for Economic Growth (PC-PEG).”
This development comes as the government pursue strategies under the PC-PEG supported by a $3 billion IMF Extended Credit Facility (ECF), of which, the first tranche of $600m was received by the government in May 2023.
The programme is aimed at restoring macroeconomic stability, ensuring debt sustainability, and building a foundation for a stronger and more inclusive growth.
All these are been done in respect of the current economic crisis facing the country, induced by the COVID-19 pandemic, Russia- Ukraine war and internal structural challenges.
An IMF Staff Mission is expected to be in the country between September 25 and early October, to conduct the first assessment of the performance of Ghana’s three-year programme with the Fund.
Ghana’s performance assessment of the loan-support programme would be done using some six quantitative performance criteria, three indicative targets and other structural benchmarks.
Meanwhile, Mr Ken Ofori-Atta, the Finance Minister has expressed confidence of the country meeting all performance criteria for the second tranche of $600m to be disbursed in December 2023.
“There are a lot of conditions to be met, but we’re working assiduously to make sure that we meet that, and we’ve gone a long way to be ready for the Mission,” Ofori-Atta said earlier in the week.
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