The Finance Ministry has assured all bondholders that the government is committed to honouring its future payment obligations in the Domestic Debt Exchange Programme (DDEP).

According to the Ministry, the government has no intention to renege on such obligations. 

“The Government of Ghana hereby reiterates its commitment to honouring all future payment obligations, in accordance with the terms of the new arrangements,” it said in an August 23 communiqué.

In the press statement, the Ministry also thanked all those who participated in the DDEP voluntarily.

The statement added that: “Government further re-affirms its commitment to the success of the new bonds and a credible and strong domestic securities trading market,” the Finance Ministry added.

Government on Tuesday, August 22, settled ¢2.4 billion of the first coupon payment on bonds occasioned by the controversial Domestic Debt Exchange Programme.

This, the Minister of Finance, Ken Ofori-Atta, says is in line with the government’s commitment to the continuous success and credibility of Ghana’s domestic debt operations.

The bonds that are expected to mature in 2027 as indicated in the memorandum documents were originally expected to mature in 2023. 

They are in all the category bonds that are Category A Bonds, Category B Bonds, and the General Category Bonds.

Whilst the coupon or interest rates of the August 27, 2023 bonds are going for 14.13% and 15.00%, that of August 28, 2023, are currently priced at 10% and 15% respectively.

The DDEP was introduced in 2022 in an effort to restructure Ghana’s unsustainable debt burden.

Under the programme, eligible bondholders were given the option to exchange their old bonds for new ones with lower interest rates and longer maturities.