27th August 2023 12:30:34 PM
2 mins readMinister of State for Finance, Dr. Mohammed Amin Adam, has reconfirmed the government's dedication to securing the necessary funds to fulfil upcoming obligations as part of the Domestic Debt Exchange Programme (DDEP).
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This affirmation follows the successful completion of the initial coupon payment within the DDEP framework, totaling a substantial amount of GH2,369,667,190.18, or roughly 2.4 billion Ghana Cedis. This payment is noted as the largest coupon settlement in a single day, as per records in the country's history.
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During an appearance on Joy News' PM Express on Thursday, August 24, 2023, the Deputy Minister emphasised that the settlement of the initial coupons underscores the government's unwavering commitment to ensuring the success of the DDEP.
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“Government is working to reduce its over-reliance on T-bills by aggressively pursuing revenue mobilisation and expenditure controls. To the extent that we’ve had a successful DDEP, our financing needs will reduce, which gives the government enough room to settle future debt obligations,” he said.
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Introduced in 2022 as a strategic policy to alleviate Ghana’s unsustainable debt burden, the DDEP aimed to reshape the nation’s debt profile. Under this programme, eligible bondholders were provided with the choice to exchange their existing bonds for new ones, characterised by lower interest rates and extended maturities.
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The Ministry of Finance, in an official statement released on Wednesday, August 23, 2023, highlighted that per the terms of the DDEP, launched on December 5, 2022, to complement the government’s fiscal programme, the initial coupon payments for the tendered bonds were due on August 22, 2023.
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In fulfilment of this commitment, the government fully settled the first coupon payment linked to the DDEP, totaling GH2,369,667,190.18 (GHC 2.4 billion).
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The Minister of State additionally remarked that the new bonds issued under the DDEP now take centre stage as the most prominent instruments within the domestic bond market. This positive development lays a strong foundation for a strengthened domestic securities market, and a swift economic recovery.
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Dr Amin Adam also re-iterated the government’s unwavering determination to honour all upcoming payment commitments, in adherence to the new arrangements and terms.
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The Minister of State also expressed heartfelt gratitude to all stakeholders, particularly the bondholders who participated in the DDEP. He pledged that as the government forged ahead on the path of economic recovery, it would do everything within its mandate to make sure future debt obligations under the DDEP were settled per the published timelines.
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