Government pays two bullet coupons of about GH¢6 billion for DDEP - Amin Adam

The government, through the Ministry of Finance, has successfully paid two bullet coupons, each consisting of about GH¢6 billion, for the Domestic Debt Exchange Programme (DDEP).

This is according to the finance minister, Dr. Mohammed Amin Adam who said the market is assured of government's commitment to honour payments for the third coupon of the DDEP in August 2024.

During a monthly update on the Ghanaian economy, the finance minister said the government will continue to honour its financial obligations and will do so in a timely manner.

He also highlighted the government's resolve to lower portfolio risk with regard to the average weighted interest rate.

He explained, "The pre-DDEP weighted average interest rate was around 21%. This has, however, reduced by 7.5 percentage points to around 13.5% on account of a relatively small weight of the short-term instruments in the entire public debt portfolio."

The finance minister was optimistic about signs towards economic stabilization, stating that the government has made significant progress in stabilizing the macro-economy on the back of increasing growth, improved primary and fiscal balance, declining interest rates, and inflation.

He admitted that although there has been instability in the exchange rate, the situation will soon be under control as seasonal factors and the strengthening of the U.S. Dollar on the international currency market are impeding on the gains made.

"We are, therefore, confident of locking in these positive gains in the near term with a further reduction in these key economic aggregates to improve domestic market sentiments post-DDEP," he concluded.

MA/SA