The Ministry of Finance has revealed that the Government of Ghana and Ghana Association of Banks (GAB) have made significant progress on the terms for the participation of Banks in the Domestic Debt Exchange Programme (DDEP).
According to the Ministry of Finance, the agreement encompasses final improvements to the terms of the DDEP.
In a joint release sighted by Thinknewsonline.com, it read "An agreement to pay 5% coupon for 2023 and a single coupon rate for each of the twelve (12) new bonds resulting in an effective coupon rate of 9%. Clarity on the operational framework and terms of access to the Ghana Financial Stability Fund (GFSF)"
The release also disclosed the removal or amendment of all clauses in the Exchange Memorandum that empowers the Republic to, at its sole discretion, vary the terms of the Exchange.
The GAB says it recognises the progress made and notes that participation of its member banks in the DDEP, per the new terms, is subject to each individual bank’s internal governance and approval processes but, in any case, not later than January 30, 2023.
"This is a significant milestone towards addressing our economic challenges, and will thus help to restore macro-economic stability and accelerate Ghana’s economic growth"
Below is a copy of the release:
Story by: Joshua Kwabena Smith