Government extends domestic debt exchange registration deadline to December 30

The Government has extended the deadline for the Domestic Voluntary Debt Exchange to Friday, December 30th 2022, from Monday, December 19.

The extension is to, among others, “afford the Government the opportunity to consider suggestions made by all Stakeholders with the aim of adjusting certain measures acceptable within the constraints of the Debt Sustainability Analysis”, an official statement issued by the Finance Ministry said.

The statement, issued by the Public Relations Unit of Ministry, said the Government also fully considered feedback from the financial sector in relation to the need to secure internal and Executive Board approvals, which were necessary considerations for their participation in the Exchange.

“This in some instances may require emergency board meetings etc. Considering these developments, and taking cognisance of the festive season, we have decided to extend the Expiration Date of the voluntary offer to Friday December 30th, 2022, with a contemplated settlement date on Friday, January 6th, 2023″.

“We believe this extension will provide enough time for the necessary consultations and analysis to be completed to meet the expectations of local and foreign institutional bondholders while preserving the integrity of the Debt Sustainability Analysis and the Staff Level Agreement.”

On Monday, December 6, 2022, the Government launched a GHS137.3 billion debt exchange programme and called on domestic bond holders to take part, to support its move for economic restoration, stability and growth by voluntarily taking part in Ghana’s domestic debt exchange programme.

The country is facing economic difficulties following the COVID-19 pandemic high crude oil prices and other external factors.

Over the last 10 days, the statement said, Governmentcontinued the consultation efforts that it initiated with all stakeholders ahead of the launch of the offer, including regulators, bankers, pension funds, asset managers, and insurance companies.

Complementing the efforts on the structure of the offer, the statement said, it was working with the Bank of Ghana and other regulators (SEC, NPRA, and NIC) in the financial sector and its advisors and also including input from various institutions and the Unions.

On Monday, December, 13, the Government and the International Monetary Fund announced that they hadreached a Staff Level Agreement over the three billion dollar extended credit facility Ghana is seeking from the Fund to stabilise its post COVID-19 economy.