The Government and the Ghana Association of Banks (GAB) have reached an agreement on the terms of participation for banks in the Domestic Debt Exchange Programme (DDEP).
The new agreement includes a 5 percent coupon for 2023, as well as a single coupon rate for each of the 12 new bonds, resulting in an effective coupon rate of 9 percent.
The deal also includes greater clarity on the operational framework and terms of access to the Ghana Financial Stability Fund (GFSF), as well as the removal or amendment of clauses that empower the Republic to vary the terms of the exchange at its discretion.
The GAB has stated that member banks’ participation is subject to their internal governance and approval processes, with a deadline of January 30 for participation.
The Ghanaian government has hailed the agreement as a “significant milestone” towards addressing economic challenges and restoring macro-economic stability.
Read full statement below:
By Vincent Kubi