Prime News Ghana

Deadline for bondholders to sign onto debt exchange programme expires today

By Vincent Ashitey
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Government’s deadline for bondholders to sign onto the domestic debt exchange programme expires today, Monday, January 16, 2023 at 4:00 p.m.

This comes after two extensions of the expiration date by the Finance Ministry.

READ ALSO: Exempt us from debt exchange programme – Individual bondholders petition Parliament

Following the expiration, the announcement date is now expected to happen on January 17, 2023, or by the end of the week, the Finance Ministry said.

All things being equal, the Settlement date for the invitation is 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, 31st January 2023, unless further extended by the Government pursuant to the Invitation.”

Government on December 5, 2022, launched a domestic debt exchange in which it invited holders of approximately GHS137.3 billion of principal amount outstanding of domestic notes and bonds, E.S.L.A. Plc or Daakye Trust Plc (the “Eligible Bonds”) to exchange for a package of new bonds to be issued by the government (the “New Bonds”).

READ ALSO: Gov't extends deadline for domestic debt exchange programme again

A leading member of the ruling New Patriotic Party(NPP), Gabby Asare Otchere-Darko says “Ghana is in a very difficult place” which makes the Debt Exchange Program critical and non-negotiable for getting an IMF deal to stabilize the economy.

In a social media post, the NPP member observed that if participation is low regarding the debt exchange program “we jeopardize resolving the economic crisis and hardships.”

Meanwhile, Ghana Individual Bondholders Forum has petitioned Parliament to exclude its members from the government’s domestic debt exchange programme.