No second round of DDEP for pension funds – Finance Minister assures

Finance Minister, Ken Ofori-Atta, has denied reports of a second round of the Domestic Debt Exchange Programme (DDEP) targeting pension funds.

"There is nothing like a second DDEP for Pension Funds. In the GOG Memorandum with Organized Labor dated 22nd December 2022, it was agreed that pensions were exempt and that remains the case.

“It is therefore NOT correct to state that Government is planning a second round of Domestic Debt Exchange Programme targeting pension funds," he said.

The Minister was responding to questions from journalists on the sidelines of the World Bank/IMF Spring Meetings in Washington D.C. on Thursday, April 13, 2023.

According to him, government is rather working with stakeholders to explore mutually beneficial options within debt sustainability limits and to promote macroeconomic stability and economic recovery through social partnership. He added that the government is committed to reducing debt servicing obligations to support Ghana's economic recovery program.

The clarification from the Finance Minister follows reports that the government was planning a second round of the DDEP targeting pension funds. The initial DDEP was launched in 2022 as part of efforts to manage the country's debt and improve debt sustainability.

The government has faced criticism from some quarters over the DDEP, with concerns raised over the impact on Pension Funds and the broader implications for the country's financial sector.

Mr. Ofori-Atta's statement is likely to provide some reassurance to pensioners and other stakeholders, who have been keen to understand the government's plans for managing the country's debt and promoting economic recovery.

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