Ghanaian finance minister says domestic debt exchange reaches deadline

Ghana’s Domestic Debt Exchange Program (DDEP), a part of broader debt restructuring strategies, reached a crucial deadline Tuesday, Ghanaian Finance Minister Ken Ofori-Atta has said.

Ofori-Atta made the announcement in a live broadcast late Monday, saying the government would not extend the deadline beyond Tuesday.

The Ghanaian government embarked on the path last December to exchange existing domestic debts for fresh ones with lower annual coupon rates, starting from a zero percentage in 2023.

“The government’s singular motivation for taking this rather difficult road is to restore macroeconomic stability, achieve debt sustainability and get the economy fully back on track,” said Ofori-Atta.

He said the government had, in good faith, held extensive stakeholder engagements with all groups to reach a resolution “that ensures an orderly path out of our economic challenges, anchored by a sense of community and empathy.”

Ghana has been plagued by multiple economic hardships, including soaring inflation and persistent currency depreciation since the beginning of last year, prompting the government to seek support from the International Monetary Fund (IMF).

The government explained that the DDEP was part of a broader debt restructuring operation required for the IMF to grant a bailout package to Ghana to salvage the ailing economy.

Source: newsghana.com.gh