The government of Ghana has commenced the process of paying the first coupon payment of bonds affected by the domestic debt exchange programme (DDEP) through the Ministry of Finance.
According to the Ministry, the matured coupons total GHC 2.4 billion, and settlement instructions have already been received.
The DDEP was established in 2022 to address Ghana’s unsustainable debt burden. Eligible bondholders were offered the option to exchange their old bonds for new bonds with lower interest rates and longer maturities under the programme.
The impacted bonds’ coupon payment was negotiated to be 5%, which was lower than the interest rates on the old bonds.
However, there were initial market concerns about whether the government would be able to make the 5% coupon payment, but the Ministry of Finance eased these worries by stating that the government’s decision to settle the first coupon payment is consistent with its commitment to the continued success and credibility of the nation’s domestic debt operations.
The ministry also pointed out that in the domestic bond market, the new bonds that were issued under the DDEP currently command a commanding position.
