Gov’t determined to mobilize liquidity to meet future DDEP obligations – Amin Adam
Minister of State for Finance, Dr. Mohammed Amin Adam has reaffirmed government’s commitment to securing the necessary liquidity to meet forthcoming obligations within the ambit of the Domestic Debt Exchange Programme (DDEP).
This comes on the heels of the successful settlement of the inaugural coupon payment due under the DDEP, amounting to a significant GH¢2,369,667,190.18, or approximately 2.4 billion Ghana Cedis. This is said to be the largest coupon settlement in a single day, on record in the nation’s history.
Speaking on Joy News’ PM Express on Thursday, August 24, 2023, the Deputy Minister said the settlement of the first coupons is testament to government’s commitment to ensure the success of the DDEP.
“Government is working to reduce its over-reliance on T-bills by aggressively pursuing revenue mobilization and expenditure controls. To the extent that we’ve had a successful DDEP, our financing needs will reduce which offers government enough room to settle future debt obligations,” he said.
Introduced in 2022 as a strategic policy to alleviate Ghana’s unsustainable debt burden, the DDEP aimed to reshape the nation’s debt profile. Under this programme, eligible bondholders were provided with the choice to exchange their existing bonds for new ones, characterized by lower interest rates and extended maturities.
The Ministry of Finance, in an official statement released on Wednesday, 23rd August, 2023, highlighted that per the terms of the DDEP, launched on December 5, 2022, to complement the government’s fiscal programme, the initial coupon payments for the tendered bonds were due on August 22, 2023.
In fulfillment of this commitment, the government fully settled the first coupon payment linked to the DDEP, totaling GH¢2,369,667,190.18 (GHC 2.4 billion).
The Minister of State additionally remarked that the new bonds issued under the DDEP now take center stage as the prominent instruments within the domestic bond market. This positive development lays a strong foundation for a strengthened domestic securities market, and a swift economic recovery.
Dr Amin Adam also re-iterated government’s unwavering determination to honor all upcoming payment commitments, in adherence to the new arrangements and terms.
The Minister of state also expressed heartfelt gratitude to all stakeholders, particularly the bondholders who participated in the DDEP. He pledged that as the government forged ahead on the path of economic recovery, it would do everything within its mandate to make sure future debt obligations under the DDEP were settled per the published timelines.
Source: citinewsroom
