DDEP: Gov't secures 80% target
The government has secured more than 80 per cent of targeted participation in the Domestic Debt Exchange Programme (DDEP), a source familiar with the process hastold the Daily Graphic.
According to the source, the Central Securities Depository was conducting the final reconciliation of the numbers to ensure that there was no double counting.
The deadline for tendering existing bonds for new ones ended last Tuesday, February 7, this year.
However, some people encountered technical challenges while accessing the platform to tender for a swap.
The government, therefore, provided an administrative window up to last Friday to enable such persons to tender.
However, the Ministry of Finance, which is spearheading the DDEP,did not change the date for settlement — the actual day on which new sovereign debt instruments with agreed features will be presented to existing holders on exchange for their old ones which bear higher coupons (interest rates) which made it challenging for the government to honour continuously, given the liquidity challenges the country is facing.
If the settlement goes through tomorrow,it will bring to an end a two-month long programme to get the support of domestic bondholders to ensure debt sustainability, the first time the country has embarked on this remedial economic measure.
The Finance Minister, Ken Ofori-Atta, last month expressed the optimism that the government would secure a minimum of 80 per cent of the GH¢137 million bonds needed to secure the favour of the International Monetary Fund (IMF) for a $3-billion extended credit facility support.
Aside from providing foreign exchange support,it will also create the credibility and the fiscal space to enable the government to access the international financial market.
more to follow...