Government will not reopen Debt Exchange Programme – Ofori-Atta annouces completion

Minister of Finance, Ken Ofori-Atta has said government has successfully completed the Domestic Debt Exchange Programme.

According to him, the programme will no longer be reopened as he believes the reduced coupon rates and lengthened maturities achieved through the domestic debt restructuring are expected to provide government with much-needed breathing space.

Speaking during an investors meeting in London on October 16, 2023, Ken Ofori-Atta said the completion of the DDEP will further set the domestic debt to-GDP ratio on a clear downward trend.

“Considering the new structure of domestic debt resulting from these exchanges, current domestic market interest rates are expected to remain fully consistent with our public debt being on a sustainable path. We acknowledge that restoring the sustainability of our debt has required significant efforts from the Ghanaian people and financing institutions,” he explained.

“We are grateful for the widespread participation in these exchanges. I would like to clarify that all planned exchanges of domestic marketable debt have been completed, and the DDEP will not be reopened. The effort made by domestic holders of public debt, including the Bank of Ghana (BoG), has been significant, and this is now a thing of the past,” the Finance Minister pointed out.

He however noted that new debt instruments issued by government in the domestic market are safe and secured while adding that the DDEP has been positively received internationally.

“This demonstrates our willingness to resolve this debt crisis together, and that the effort requested from our external creditors will complement our own effort,” the Finance Minister said.

MA

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