The government of Ghana as part of efforts to restructure its unsustainable debt under the auspices of the Ministry of Finance, has commenced the process of settling the initial coupon payment for bonds impacted by the Domestic Debt Exchange Program (DDEP).
With a total value of GHC 2.4 billion, the matured coupons have been addressed following the programme’s implementation.
Launched in 2022, the DDEP aimed to alleviate Ghana’s mounting debt burden. It offered eligible bondholders the choice to swap their older bonds for new ones with reduced interest rates and extended maturities. The coupon payment for these affected bonds was mutually agreed upon at 5%, a lower rate compared to the interest on the previous bonds.
Initial concerns prevailed in the market about the government’s ability to meet this 5% coupon payment. However, the Ministry of Finance has dispelled these apprehensions, emphasizing that the first coupon payment’s settlement underscores the government’s unwavering dedication to ensuring the sustained success and trustworthiness of the nation’s domestic debt operations.
Furthermore, the ministry highlighted that the newly issued bonds as part of the DDEP have now become the predominant financial instruments within the domestic bond market.