DDEP: Government Achieves More Than 80% Participation

Government is said to have achieved more than the 80% target needed for the Domestic Debt Exchange Programme (DDEP).

The programme is part of the requirements before Ghana can secure an economic bailout of about $3 billion from the International Monetary Fund (IMF).

Some persons close to the team who worked on the programme told Joy Business the target was realised on Friday, 10th February 2023. 

The Finance Minister, Ken Ofori-Atta, is expected to make an official announcement on how the programme fared this week.

Government was able to achieve the target despite the exclusion of the Pension Funds from the programme.

How did government achieve the target? 

“The programme was largely successful due to significant participation by institutional bondholders in the offer like the major banks, insurance firms and securities industry players,” a source told Joy Business.

Despite the protest by the Individual Bondholders Forum, a group that objected to the programme, there is confirmation that some individual bondholders voluntarily participated in the programme.

It is expected that government will provide details on the percentage of individual bondholders who participated later when official announcement is made.

What is next for government?

The settlement of the exchange is scheduled for Tuesday, 14th February 2023.

If government successfully closes all deal for the DDEP, it will pave the way to start the processes for the external debt restructuring which is not likely to face stiff opposition.

Source: myjoyonline