The Government of Ghana and the Ghana Association of Banks (GAB) have made significant progress in their negotiations for the participation of banks in the Domestic Debt Exchange Programme (DDEP).
The agreement includes final improvements to the terms of the DDEP, such as an agreement to pay a 5% coupon for 2023 and a single coupon rate for each of the twelve new bonds, resulting in an effective coupon rate of 9%.
The agreement also provides clarity on the operational framework and terms of access to the Ghana Financial Stability Fund (GFSF), and removes or amends all clauses in the Exchange Memorandum that give the Republic the power to vary the terms of the exchange at its discretion.
The GAB has recognized the progress made and notes that participation of its member banks in the DDEP, under the new terms, is subject to each individual bank’s internal governance and approval processes, but must be completed by 30th January, 2023.
This agreement is a significant step towards addressing economic challenges in Ghana and restoring macro-economic stability. It will help to accelerate Ghana’s economic growth and the Government of Ghana reiterates its commitment to concluding the DDEP in time, with all other stakeholders.
