DDEP: Finance Ministry Committed To Honouring All Payment Obligations

The Finance Ministry has reiterated its commitment to honouring its future payment obligations in the Domestic Debt Exchange Programme (DDEP).

This follows its settlement of the first coupon due from the DDEP, which amounted to GH¢2,369,667,190.18 (approximately 2.4 billion Ghana Cedis).

According to the ministry, the government has no intention to renege on such obligations.

“The Government of Ghana hereby reiterates its commitment to honouring all future payment obligations, in accordance with the terms of the new arrangements,” it said in an August 23 communiqué.

In the press statement, the ministry thanked all those who participated voluntarily in the DDEP.

The statement added that: “Government further re-affirms its commitment to the success of the new bonds and a credible and strong domestic securities trading market,” the Finance Ministry added.

The Minister of Finance, Ken Ofori-Atta, says this aligns with the government’s commitment to the continuous success and credibility of Ghana’s domestic debt operations.

As indicated in the memorandum documents, the bonds expected to mature in 2027 were originally scheduled to mature in 2023.

They are in all the category bonds that are Category A Bonds, Category B Bonds, and the General Category Bonds.

Whilst the coupon or interest rates of the August 27, 2023 bonds are going for 14.13% and 15.00%, that of August 28, 2023, are currently priced at 10% and 15%, respectively.

The DDEP was introduced in 2022 to restructure Ghana’s unsustainable debt burden.

Under the programme, eligible bondholders could exchange their old bonds for new ones with lower interest rates and longer maturities.