Ghana to Resume Issuing Long-Dated Domestic Bonds Following DDEP Disaster
- The government is set to resume issuing long-dated bonds after the Domestic Debt Exchange Programme restrictions expire
- Deputy Minister of Finance Thomas Nyarko Ampem highlighted the potential benefits for pension funds and long-term investors
- The DDEP restrictions were designed to prevent the government from issuing new bonds after defaulting on its debt in 2023
The government plans to resume issuing long-dated domestic bonds.
Deputy Minister of Finance Thomas Nyarko Ampem noted to Joy News that the development will allow the government to explore avenues to raise long-term funds to finance some of its initiatives and the national budget.
Source: Facebook
This move follows the expiration of restrictions imposed in 2023 under the Domestic Debt Exchange Programme (DDEP).
The three-year restriction was designed to prevent the government from issuing new bonds after the debt default preceding the DDEP, as part of broader efforts to stabilise the domestic debt market and restore macroeconomic credibility.
Ampem added that the development will provide managers of pension funds and other long-term investors a fresh avenue to invest their funds.
“Government now has the option to look at issuing new bonds to support the country’s finances."
According to Ampem, the expiration of the restrictions will also allow the government to reduce its dependence on Treasury bills and issue longer-dated domestic bonds.
Some analysts indicate that issuance could begin as early as March 2026, potentially allowing for offshore participation and providing meaningful liquidity support.
The Deputy Minister also rejected viral claims that recent improvements in economic indicators are not benefiting Ghanaians.
“If you look at the current indicators, the economy has improved significantly compared to what the government inherited in December 2024."
“A bag of sugar has reduced significantly, and the same applies to building materials, which has directly impacted individuals and businesses."
About the Domestic Debt Exchange Programme
Ghana launched a domestic debt exchange on December 5, 2022, after defaulting on its debt, which included $55 billion in public debt.
The Bank of Ghana notably lost GH¢55.12 billion due to the haircuts its investments suffered under the controversial Domestic Debt Exchange Programme.
Under the domestic debt exchange, local bonds would be exchanged for new ones maturing in 2027, 2029, 2032, and 2037.
Their annual coupon would be set at 0% in 2023, 5% in 2024, and 10% from 2025 until maturity.
Local pension funds were exempted from the domestic debt exchange after unions threatened a general strike.
Source: Getty Images
Michael Blackson rants over Domestic Debt Exchange
In 2024, YEN.com.gh reported that Michael Blackson, a US comedian of Ghanaian descent, had ranted online at the previous administration because of lost investments.
He stated that he had purchased Eurobonds to run his school situated at Agona Nsaba, but had suffered significant losses because of his investment in Ghana bonds.
With his tweets, Blackson directed his frustration at the finance minister, who was Ken Ofori-Atta at the time, suggesting he may have to rely on charity to support his school.
Proofreading by Samuel Gitonga, copy editor at YEN.com.gh.
Source: YEN.com.gh
