Treasury bills and individual bond holders will not be subject to investment haircuts, according to the government, as the nation intends to implement a domestic debt exchange program.

These exemptions, according to Finance Minister Ken Ofori-Atta, are a part of steps taken to lessen the effects of the debt swap program.

Ken Ofori-Atta indicated that domestic bond holders will be required to swap their securities for new ones under the program in a video message published on December 4, 2022.

He also said there will no haircuts on the principal bonds of investors under the domestic debt restructuring programme.

“Existing domestic bonds as of December 1, 2022, will be exchanged for a set of four new bonds maturing in 2017, 2029, 2032 and 2037,” he noted.

“The annual coupon on all of these new bonds will be set at 0% in 2023, 5% in 2024 and 10% in 2025 until maturity. Coupon payments will be semi-annual,” Ken Ofori-Atta explained.

The Finance Minister in the 4-minute address said the move was in line with government's Debt Sustainability Analysis as contained in the 2023 budget he presented to Parliament on November 24.

Ken Ofori-Atta outlines Domestic Debt Exchange programme