Minister of State in charge of Finance and Economic Planning, Dr. Mohammed Amin Adam has stated that government’s successful payment of coupons under the Domestic Debt Exchange Programme (DDEP) has significantly restored credibility in Ghana’s economy.
According to him, the coupon payment underscores the government’s unwavering commitment to its debt obligations, as outlined within the framework of the DDEP.
Speaking on Joy News’ PM Express on Thursday, August 24, 2023, Dr. Amin emphasized that the completion of the coupon payment served as a positive signal to the market, and a testament to government’s responsible fiscal management.
“The successful payment of our first DDEP coupons is a confirmation of the government’s commitment to the continued success and credibility of the domestic debt operations that the government undertook in the early part of the year,” Dr. Amin Adam stated. “It is a good thing, and it assures the market of confidence and the government will continue to keep to its obligations as far as the debt operations and restructuring is concerned.”
Introduced in 2022, the DDEP was designed to strategically reconfigure the nation’s debt profile and bring it to debt sustainability.
Operating within this framework, eligible bondholders were asked to voluntarily exchange their bonds for newly issued ones.
The new bonds had reduced interest rates and extended maturities, underscoring the government’s commitment to pursuing more sustainable fiscal strategies in an attempt to salvage the Ghanaian economy; ravaged by the COVID-19 pandemic and the Russia-Ukraine war.
The first coupon payment associated with the swapped bonds, due on 22nd August, 2023, had become the subject of market speculation, as a result of concerns about the government’s capacity to fulfill its commitment.
However, on the back of the completion of the first coupon payment of some 2.4 billion Cedis on August 22, 2023, Dr. Amin indicated that this stood as evidence of the government’s resolute dedication to ensuring the success of the DDEP. He further stated that the successful coupon payment reinforced the position that the economy had turned the corner and was gradually gaining credibility.
Dr Amin assured stakeholders, especially bondholders, that government’s commitment to meeting its obligations would extend beyond this payment. He affirmed, “let me assure you and to assure all bondholders that government is committed to its obligation and as soon as all coupons are due, government will respect its obligations.”