The Government of Ghana and the Ghana Association of Banks (GAB) have made significant progress on the terms of participation of Banks in the Domestic Debt Exchange Programme (DDEP).
Final adjustments to the program’s conditions are included in the revised agreement.
These include an agreement 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 framework and conditions of access to the Ghana Financial Stability Fund (GFSF), and the removal or modification of all clauses in the Exchange Memorandum that permit the Republic to change the terms of the Exchange at its sole discretion.
A joint statement from the Finance Ministry and GAB that was released on Monday provides this information.
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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 participate.
GAB stated that member banks’ participation in any issue should not come after the January 30 deadline.
“This is a significant milestone towards addressing our economic challenges, and will thus help to restore macro-economic stability and accelerate Ghana’s economic growth. With this achievement, the Government of Ghana reiterates its commitment to concluding the DDEP in time with all other stakeholders,” the statement noted.
Source: Myjoyonline
