DDEP: New terms still leave some Ghanaians worse off – Economist

An economist, Theo Acheampong, has stated that even though the new terms in the amended debt exchange programme are improved, they do not conclusively abhor a section of Ghanaians from hardships.

“The terms that are being offered on the table, definitely are improved and it shows that the government is listening, no two ways about that,” however, “it still leaves a certain segment of the population worse off than they currently are and they can be excluded without the undue burden that the exchange comes with,” he was quoted by asaasenews.com.

The government announced a final extension of the deadline for the debt exchange to February 7, 2023, with revised terms.

The revised terms include:

a. An affirmation that all individual bondholders are free not to participate;

b. However, upon a successful DDEP there will be very few of the ‘old bonds’ in circulation, and likely limit its tradability;

c. In this regard, the Government is pleased to make available the following alternative offer to encourage all individual bondholders to participate in the Exchange:

i. All individual bondholders who are below the age of 59 years will be offered instruments with a maximum maturity of 5 years, instead of 12 years, and a 10% coupon rate;

ii. All retirees (including those retiring in 2023) will be offered instruments with a maximum maturity of 5 years, instead of 12 years, and a 15% coupon rate.

“These developments have necessitated the final extension of the deadline from January 31, 2023, to Tuesday, February 7, 2023, and a new settlement date of Tuesday, February 14, 2023, that will be confirmed via the new Exchange Memorandum,” the Finance Ministry added.

SSD/FNOQ