Government settles GHS 87bn worth of bonds

 

Ghana’s successful conclusion of the Domestic Debt Exchange Programme (DDEP) for GH-denominated notes and bonds issued by the state, the Energy Sector Levy Act (E.S.L.A. Plc.) and Daakye Trust Plc. is a significant development for the country’s economy. The DDEP will reduce the government’s borrowing costs and improve its fiscal position, which is a critical aspect of the Post-COVID-19 Programme for Economic Growth (PC-PEG) during the current economic crisis.

The DDEP’s successful completion is a testament to Ghana’s commitment to implementing sound economic policies and strategies that will stimulate economic growth and create jobs. The restructuring of bonds to the tune of GH¢87.76 billion is a positive step towards achieving the government’s development goals.

On the settlement date of 21st February 2023, the government issued 16 series of new bonds to eligible holders whose tenders were accepted by the government. The new bonds’ principal amount per holder consists of the outstanding principal amount of eligible bonds tendered by a holder, plus any amount of accrued interest payable in respect thereof. The principal amount was allocated among holders based on each holder’s category as per the exchange memorandum.

The successful completion of the DDEP will help the government reduce its borrowing costs and improve its fiscal position, which will have a positive impact on Ghana’s economy. The Ministry of Finance expressed gratitude to all stakeholders who participated in the DDEP, including holders of eligible bonds, financial advisors, legal advisors, and the Central Securities Depository.

The ministry’s reassurance of its commitment to implementing sound economic policies and strategies that will stimulate economic growth and create jobs is a welcome development. Ghana has been one of the fastest-growing economies in Africa, but the COVID-19 pandemic has affected its economic growth. The successful completion of the DDEP is a positive step towards restoring the country’s economic growth.

The successful completion of Ghana’s Domestic Debt Exchange Programme is a positive development for the country’s economy. The restructuring of bonds to the tune of GH¢87.76 billion will help the government reduce its borrowing costs and improve its fiscal position. Ghana’s commitment to implementing sound economic policies and strategies that will stimulate economic growth and create jobs is a welcome development, and stakeholders are urged to continue supporting the government’s efforts towards achieving its development goals.

Source: norvanreports