- Ghana Association of Bankers (GAB) and the finance ministry have agreed on some modifications to some of the controversial proposals in the DDEP
- For instance, the finance ministry has now agreed to begin to pay a 5% coupon on investments from 2023 and not 2024 as it had earlier proposed
- GAB has urged its members to support the programme because it is critical to solving the country's debt challenges
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The Ghana Association of Bankers (GAB) has gotten the finance minister Ken Ofori-Atta to slightly modify terms in the Domestic Debt Exchange Programme (DDEP), allowing for the resolution of an earlier impasse.
The finance ministry and the GAB have issued a statement announcing "significant progress on the terms for the participation of banks" in the DDEP after improvements.
One of the modifications, according to the statement, has been government's agreement to pay 5% coupon for 2023. The finance ministry had initially set 2024 to begin paying the 5% coupon.
Also, the finance ministry agreed to pay a single coupon rate of 9% for each of the 12 new bonds.
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The statement dated Monday, January 23, 2023 states further that there has also been clarity on the operational framework and terms of access to the Ghana Financial Stability Fund (GFSF). GFSF is expected to help financial institutions that will be hardest hit by the DDEP.
Furthermore, clauses in the DDEP that gives the state unchecked authority to vary the terms of the programme have also been removed, the statement disclosed further.
The GAB wants its members to make up their minds about joining the programme not later than January 30.
The Association notes, however, that the final decision will be based on the discretion of individual banks, but acknowledges that the DDEP is critical to addressing Ghana's current economic challenges.
Investors Oppose Ofori-Atta's debt exchange programme
Meanwhile YEN.com.gh has reported in a separate article that the domestic debt exchange programme, which is a plan by Ken Ofori-Atta to prevent an economic collapse has been criticised as insensitive by some investors in Ghana's bonds.
Critics say the DDEP proposes to erode investments of thousands of Ghanaians.
Individual bondholders, some banks and other interest groups have rejected the proposals. Government says participation in the programme is voluntary.
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