Ghana government's Domestic Debt Exchange Program (DDEP) has closed with over 80% participation of eligible bonds, according to a press release from the Ministry of Finance on 14th February 2023. Government expressed gratitude to the people of Ghana for their support during difficult times.
The government emphasized that the DDEP was voluntary and individual bondholders were free to choose not to participate. However, the government encouraged participation as a critical act of burden-sharing in the ongoing national effort to tackle the economic crisis, bring back macroeconomic stability, and guarantee sustainable growth and prosperity for the people of Ghana.
The government also offered alternatives to encourage individual bondholders and retirees to tender for the new bonds, which will have wider secondary market circulation.
“We are grateful to those who took part in the advocacy in securing an improved offer for participants,” the government stated in the press release.
The government reassured all individual bondholders who elected not to participate that their coupon payments and maturing principals, like all government bonds, would be honoured in line with the government's fiscal commitments.
The DDEP was done to help protect the economy and enhance the government's capacity to service public debts effectively. The alternative of not executing the DDEP would have brought grave disorder in the servicing of the national debt and exacerbated the current economic crisis.
“We wish to assure Ghanaians of our full commitment to addressing these issues,” the Ministry of Finance stated in the press release.
The government expressed its gratitude for the overwhelming participation of all bondholders, stating that their support and contributions had brought the country closer to securing the IMF program.