Government has said Treasury bills, individual bond holders will be exempted from investment haircuts as the country plans to undertake a domestic debt exchange programme.

According to Finance Minister, Ken Ofori-Atta, these exemptions form part of measures aimed at mitigating the impact of the debt exchange programme.

In a video message shared on December 4, 2022, Ken Ofori-Atta noted that domestic bond holders will be compelled to exchange their instruments for new ones under the programme.

He also said there will no haircuts on the principal bonds of investors under the domestic debt restructuring programme.

“Existing domestic bonds as of December 1, 2022, will be exchanged for a set of four new bonds maturing in 2017, 2029, 2032 and 2037,” he noted.

“The annual coupon on all of these new bonds will be set at 0% in 2023, 5% in 2024 and 10% in 2025 until maturity. Coupon payments will be semi-annual,” Ken Ofori-Atta explained.

The Finance Minister in the 4-minute address said the move was in line with government's Debt Sustainability Analysis as contained in the 2023 budget he presented to Parliament on November 24.

MA/FNOQ