Govt begins the process of settling the first coupon payment of bonds affected by DDEP

The Ministry of Finance for the government of Ghana has initiated the procedure to fulfill the initial interest payment for bonds impacted by the domestic debt exchange program (DDEP).

The accrued coupons, totaling GHC 2.4 billion, have been prepared for settlement as per provided instructions.

Introduced in 2022, the DDEP aimed to restructure Ghana’s unsustainable debt load. This program allowed eligible bondholders to exchange their existing bonds for new ones featuring extended maturities and reduced interest rates.

The agreed-upon coupon payment for the affected bonds was set at 5%, marking a decrease from the interest rates associated with the previous bonds. Despite initial market uncertainties regarding the government’s capacity to meet the 5% coupon payment, the Ministry of Finance has dispelled these concerns.

They have emphasized that the completion of the initial coupon payment reflects the government’s steadfast dedication to ensuring the continued success and credibility of the nation’s domestic debt activities.

The ministry further highlighted that the newly issued bonds under the DDEP have now taken a prominent role as the primary instruments within the local bond market.

Source – citinewsroom.com