Reports indicate that government has achieved more than the 80% target needed for the Domestic Debt Exchange Programme (DDEP).
The programme is part of the requirements before Ghana can secure an economic bailout of about $3 billion from the International Monetary Fund (IMF).
Sources close to the team which worked on the programme have indicated that the target was realised on Friday, 10th February 2023.
The Finance Minister, Ken Ofori-Atta, is expected to make an official announcement on how the programme fared this week.
The government was able to achieve the target despite the exclusion of the Pension Funds from the programme.
Reasons behind the 80% of the target
The government was able to achieve the target due to the significant participation of institutional bondholders in the offer like the major banks, insurance firms and securities industry players.
Despite the protest by the Individual Bondholders Forum, a group that objected to the programme, there is confirmation that some individual bondholders voluntarily participated in the programme.
It is expected that government will provide details on the percentage of individual bondholders who participated later when the official announcement is made.
However, the settlement of the exchange is scheduled for Tuesday, 14th February 2023.
If the government successfully closes all deals for the DDEP, it will pave the way to start the processes for the external debt restructuring which is not likely to face stiff opposition.