General News of Wednesday, 1 February 2023
Source: www.ghanaweb.live
2023-02-01Government extends DDEP deadline to February 7 with new terms
Ken Ofori-Atta, Finance Minister
The deadline for the debt exchange programme has been extended from January 31, 2023, to February 7, 2023.
The government stated that a new settlement date of Tuesday, February 14, 2023, will be confirmed via the new Exchange Memorandum.
In a statement issued by the Finance Ministry, it noted that this comes after it “made significant progress with all stakeholders, including financial
Read full article.sector industry associations and representative groups of individual bondholders, with respect to their participation in the Programme.”
It stated that based on the agreement reached with the Ghana Association of Banks (GAB), Ghana Insurers Association (GIA), and the Ghana Securities Industry Association (GSIA), the new terms of the exchange have been accepted.
“A revised and final Exchange Memorandum will be released by Thursday, February 2, 2023,” the statement added.
However, based on its engagements the ministry is offering these new conditions as part of the new Exchange Memorandum:
a. An affirmation that all individual bondholders are free not to participate;
b. However, upon a successful DDEP there will be very few of the ‘old bonds’ in circulation, and likely limit its tradability;
c. In this regard, the Government is pleased to make available the following alternative offer to encourage all individual bondholders to participate in the Exchange:
i. All individual bondholders who are below the age of 59 years will be offered instruments with a maximum maturity of 5 years, instead of 12 years, and a 10% coupon rate;
ii. All retirees (including those retiring in 2023) will be offered instruments with a maximum maturity of 5 years, instead of 12 years, and a 15% coupon rate.
“These developments have necessitated the final extension of the deadline from January 31, 2023, to Tuesday, February 7, 2023, and a new settlement date of Tuesday, February 14, 2023, that will be confirmed via the new Exchange Memorandum,” the Finance Ministry added.
SSD/DA
