Government to pay coupons and principals of old bonds by March 13

The government has announced the settlement and listing of newly issued bonds which will become the new benchmark bonds for the fixed-income market.

According to an update from the Finance Ministry on February 27, 2023, it stated that it would work with the relevant stakeholders to ensure that the new benchmark securities become the basis for deepening the domestic sovereign bond market.

The government also it is employing the necessary steps to ensure that payments of coupons and principals of the old bonds are done by March 13, 2023.

It added the recent ratings by S&P Global Ratings “acknowledges the completion of the DDEP with a successful delivery of new securities to bondholders.”

“In doing so, the selective default is substantially cured,” it added.

Meanwhile, the government announced a successful settlement and conclusion of its Domestic Debt Exchange Programme.

According to the government, the feat which was achieved on February 21, 2023, marks a significant leap as talks with the International Monetary Fund for the implementation of the post-COVID-19 programme for economic growth.

The successful conclusion meant that the government issued 16 series of new bonds to eligible holders whose tenders were accepted by the government. This is in respect of the GHS-denominated bonds issued by the government, E.S.L.A Plc, or Daakye Trust Plc.

A statement issued by the Public Relations Unit of the Finance Ministry said, “This successful result is a significant achievement for the Government in the implementation of the economic strategies of the post-COVID-19 Programme for Economic Growth (PC-PEG) during this current economic crisis.”

“The settlement was made pursuant to the terms and conditions set forth in the 2nd Amended and Restated Exchange Memorandum dated 3rd February 2023 (the “Exchange Memorandum”),” the statement added.

SSD/FNOQ