Technical committee set up to review viable alternatives to existing terms of DDEP

Government through the Ministry of Finance has set up a technical committee to explore viable alternatives to the existing terms of the Domestic Debt Exchange Programme (DDEP).

This comes after various groups of bondholders have openly expressed their displeasure with the programme and therefore want to be excluded from it.

Minister of Finance, Ken Ofori-Atta speaking with journalists after a crunch meeting with the Individual Bondholders Forum and other relevant groups said the committee will commence sitting from January 19, 2023.

He explained that the engagement will entail the investigation and possibility of finding fiscal space in the 2023 budget to allow for the exemption of certain categories of bondholders in the debt restructuring exercise.

Ken Ofori-Atta however added that the Technical Committee will comprise two IBF representatives and other relevant stakeholders.

“The Committee will be meeting tomorrow because we do not want to miss the deadline… It is urgent, it is important, and we must signal to the country that we can resolve the issues and work within our limitations but ensure that we all come out ahead somewhat,” Ken Ofori-Atta told journalists.

“Some are more vulnerable than others, therefore, some will contribute more than others, but we will find a way to get a formula that protects the most vulnerable, and ensure that we end up being able to secure an agreement with the Fund in a way which will have an orderly adjustment to our macros and fiscals so that we can build a stronger country,” he added.

Prior to this, Ken Ofori-Atta has hinted at the exemption of pensioners from the DDEP as part of efforts to protect the elderly in society who are already saddled with critical health expenses and reliance on coupon payments.



“As in any society, as I say, our key issue is that a society that does not protect the elderly is not the type of society we want,” he said in opening remarks prior to the closed-door session."

The debt exchange programme has come under intense resistance as government is being forced to extend the deadline for the invitation to sign on to the programme by bondholders.

However, the resistance has led to the extension of the deadline to January 31, 2023.





SSD/FNOQ