DDEP: Gov’t Records Over 80% Participation

The government has attained more than 80% participation in the Domestic Debt Exchange Programme (DDEP) which was announced two months ago.

This has been communicated days after the deadline for the offer came to an end.

In a statement from the Ministry of Finance on Tuesday, the government thanked participants.

“The government is therefore grateful for the overwhelming participation of all bondholders. Your support and contribution have gotten your country much closer to securing the IMF programme.”

The Programme was first announced in December 2022 as part of the government’s programme to secure an International Monetary Fund (IMF) bailout.

The Minister for Finance, Ken Ofori Atta, at the time, said the DDEP would help bring the country’s debt to a sustainable level.

The programme was first scheduled to end on Monday, December 19, however, it was extended to December 30 with a contemplated settlement date of Friday, January 6, 2023.

At the time, it was reported that no financial institutions had taken up the offer, but the Finance Ministry said the extension was to help the financial sector secure internal and Executive Board approvals to take up the Exchange offer.

On December 24, the Finance Ministry announced the second extension after excluding pension funds from the programme and including individual bonds.

The programme was then extended to January 16, 2023.

In a tweet on 16 January, the Office of the Finance Minister announced the third extension following opposition by individual bondholders.

He noted that consultation was ongoing and therefore, the expiration for the offer was extended to the end of January.

On January 31, Ofori Atta extended the deadline again to Tuesday, 7th February 2023, with a settlement date of Tuesday 14th February 2023 following modifications to the programme.

But on February 8, the Ministry announced a window for interested bondholders to complete the tender processes.

Participation
In the Ministry’s press release on Tuesday, February 14, it said there is over 80% of participation of eligible bonds.

It noted that the Programme will protect the economy and enhance its capacity to service its debts.

“The alternative of not executing the DDEP would have brought grave disorder in the servicing of our national debt and exacerbated the current economic crisis.”

Source: opemsuo.cm/Hajara Fuseini