DDEP: All Coupon Payments, Maturing Principals Will Be Paid – Gov’t Assures Bondholders

The government has assured all individual bondholders, especially senior citizens, that their coupon payments and maturing principals, like all Government bonds, will be honoured in line with Government’s Fiscal commitments.

This comes after the Government’s Domestic Debt Exchange Program (DDEP) closed on Friday 10th February 2023 with over 80% participation of eligible bonds as announced by the Ministry of Finance.

Some senior citizens have been picketing the Finance Ministry to protest the inclusion of pension funds in the domestic debt exchange programme for days despite the closure.

They say even though they have decided to opt out of the voluntary programme, they still want an official exemption by the government.

Meanwhile at the closure of the DDEP, the government in a statement reiterated that:

a. From the onset of the DDEP to its closure on Friday 10th February 2023, the participation in the programme was voluntary.

b. Having in mind that the entire exercise was voluntary, all throughout the exercise, Government always affirmed that crucial fact “that individual Bondholders are free not to participate”. Thus, the right of the individual to self-exempt was never in doubt.

c. However, under the circumstances, Government at the same time, always made a strong but humble appeal to bondholders to participate in the DDEP; seeing it as a very critical act of burden-sharing in the ongoing national effort to tackle the economic crisis, bring back macroeconomic stability and guarantee sustainable growth and prosperity for the people of Ghana.

d. Government in addition, offered alternatives to encourage individual bondholders and retirees to tender for the new bonds which will have wider secondary market circulation.

Government said it is grateful to those who took part in the advocacy in securing an improved offer for participants while reassuring all individual bondholders who elected not to participate that their coupon payments and maturing principals, like all Government bonds, will be honoured in line with Government fiscal commitments.

The DDEP according to the government is being done to help protect the economy and enhance our capacity to service our public debts effectively.

“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,” the MoF statement stated.

The Government noted that it is, therefore, grateful for the overwhelming participation of all bondholders as their support and contributions have gotten the country much closer to securing the IMF programme.

The Ministry of Finance has also said it has taken note of all additional input made by various stakeholders during the DDEP engagement to further streamline Government’s expenditures and assured Ghanaians of its full commitment to addressing these issues.

The Ministry assured, all Individual bondholders, especially senior citizens, that their coupon payments and maturing principals, like all Government bonds, will be honoured in line with Government’s Fiscal commitments.