An agreement about insurance companies’ involvement in the Domestic Debt Exchange Program(DDEP) has been achieved between the Ghanaian government and the Ghana Insurers Association (GIA).
Insurance companies will be allowed to join the program on the same terms as banks under the deal.
This was stated in a joint statement released on January 26, 2023, by the Ministry and the GIA.
“That the Government through the solvency window of the Ghana Financial Stability Fund (GFSF), will provide support for the insurance companies that are seriously affected by the DDEP. The objective is to protect jobs and the stability of the industry,” a portion of the statement reads.
According to the statement, “The GIA is happy to reach a deal with the Government that protects its members, but also enabling the Government to push through the necessary economic reforms at this
difficult times.”
Read Also: government reaches deal with securities industry association to sign up for domestic debt exchange
It noted that, “This milestone on the back of the success with the banking industry, has taken the
Government closer to completing the DDEP which is a key factor to restore economic
stability and growth.”
Government and the Ghana Association of Banks (GAB) made significant progress on the terms of banks’ participation in the Domestic Debt Exchange Program on Monday, January 23, 2023. (DDEP).
Final adjustments to the program’s conditions are included in the revised agreement.
These include a commitment to pay a 5% coupon in 2023 and a single coupon rate for each of the twelve (12) new bonds, resulting in an effective coupon rate of 9%, clarity regarding the operational structure and conditions of access to the Ghana Financial Stability Fund (GFSF), and the removal or modification of all provisions in the Exchange Memorandum that permit the Republic to change the terms of the Exchange at its sole discretion.
This was stated in a joint statement released on Monday by the Finance Ministry and GAB.
According to the revised terms, the Association of Banks stated that each bank’s internal governance and approval procedures must be followed before a member bank can join.
Source: Myjoyonline
