Domestic Debt Exchange to bring economic stability ends today
With the deadline for signing onto the domestic debt exchange programme (DDEP) set to expire today, the Minister of Finance, Ken Ofori-Atta, has appealed to bondholders to fully embrace the programme.
In a statement Monday, Mr Ofori-Atta said a lukewarm acceptance or non-participation in the DDEP by domestic investors would have a catastrophic effect on the current economic recovery efforts.
"Ladies and Gentlemen, tomorrow is the final deadline for this programme and we are hopeful all domestic investors will participate.
"Frankly, non-participation or a lower-than-expected turnout for the DDEP will prolong efforts to resolve the current economic crisis. In addition, the prospects of international financial support and other financial assurances will be jeopardised.
"This development could further put strain and stress on the government's capacity to honour key commitments. This is not what we want for our economy," he said.
According to the minister, although the DDEP was a difficult option, the government had to take that route to achieve debt sustainability, restore macro-economic stability and gradually get the economy back on growth trajectory.
The government, he said, had not gone to sleep but was working hard on other fiscal adjustments for sustainable economic recovery and growth.
He, therefore, called on all domestic investors to fully sign up to the DDEP to support the efforts by the government.
"Considering the importance of a sustained economic recovery, backed by an approved International Monetary Fund (IMF) programme in the first quarter 2023, it is crucial for groups and individuals to consider the merits of the enhanced DDER, as well as the need for economic stability, and sign up by tomorrow to make it a successful one," he said.
He acknowledged the fact that the DDEP was a difficult path but gave an assurance that the government would ensure that no one was made worse off under the programme.
"These are difficult times, no doubt, but if we hold on together, we can and will emerge from this more resilient and united than before.