Debt Exchange: Government Extends Programme Further to January 16 Next Year With Amended Terms

• The date for the expiration of the debt exchange programme has been extended by the finance ministry
• The ministry has moved the date from December 30 to January 16 in a press release issued on December 24, 2022
• The Ken Ofori-Atta led ministry has also made key amendments to the debt exchange programme announced on December 5

Government, through the finance ministry, has announced a further extension of the Domestic Debt Exchange expiration date. The expiration date has now been set for January 16, 2023.

The ministry said in a press release dated December 24, 2022 that the December 30, should be struck out.

“The Government today announces its decision to extend the Expiration Date of the Invitation from Friday, December 30, 2022, at 4 pm (GMT) to Monday, January 16, 2023, at 4 pm.

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“The Settlement Date for the Invitation is now expected to occur on Tuesday, January 24, 2023, or as soon as practicable thereafter, but no later than the Longstop Date which is now scheduled for Tuesday, January 31, 2023, unless further extended by government pursuant to the Invitation.

“The Announcement Date is now expected to occur on or about January 17, 2023,” the finance ministry statement read.

Amendments to the Debt Exchange programme by government

The finance ministry also announced amendments to the earlier announcements on the exchange programme.

They are as follows:

• Offering accrued and unpaid interest on Eligible Bonds, and a cash tender fee payment to holders of Eligible Bonds maturing in 2023;

• Increasing the New Bonds offered by adding eight new instruments to the composition of the New Bonds, for a total of 12 New Bonds, one maturing each year starting January 2027 and ending January 2038;

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• Modifying the Exchange Consideration Ratios for each New Bond. The Exchange Consideration Ratio applicable to Eligible Bonds maturing in 2023 will be different than for other Eligible Bonds;

• Setting a non-binding target minimum level of overall participation of 80% of aggregate principal amount outstanding of Eligible Bonds; and

• Expanding the type of investors that can participate in the Exchange to now include Individual Investors.

The debt exchange programme is among the government’s efforts to deal with the country’s ongoing economic crisis. It was launched on December 5, 2022.

Government said the extension follows feedback it received from the financial sector about the need to secure internal approvals.

Government Announces Plans To Sell 17 Public Companies To Private Businesses

Meanwhile, YEN.com.gh has reported in a separate story that Ghana is planning to dispose off some troubled state-owned enterprises under a divestiture programme.

Minister for Public Enterprises Joseph Cudjoe has said the government is taking the decision because they were stressing the state financially.

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He did not disclose when the divestiture will start but said government was keen on getting rid of them.

Source: YEN.com.gh