DDEP: Govt heads to finish line …appeals to all to contribute to economic recovery

The government has appealed to domestic bond holders to sign up onto the enhanced Domestic Debt Exchange Programme (DDEP), as the deadline elapses today.

According to the Minister of Finance, Ken Ofori-Atta, the participation of all individuals and groups was crucial for the coun­try’s economic recovery, backed by an approved International Mone­tary Fund (IMF) programme.

“Frankly, non-participation or a lower-than-expected turnout for the DDEP will prolong efforts to resolve the current economic crisis. In addition, the prospects of international financial support and other financial assurances would be jeopardised.

“This development could fur­ther put strain and stress on the government’s capacity to honour key commitments. This is not what we want for our economy”, said a statement signed and issued by the minister in Accra, yesterday

“Let every Ghanaian be encour­aged that the DDEP will bring us to a place of stability, economic recovery and transformational growth” it added.

The statement said the govern­ment, having listened to concerns of bondholders, was now offering all individual bondholders who were below the age of 59 years (Category A) instruments with a maximum maturity of five years, instead of 15 years, and a 10 per cent coupon rate.

For all retirees (including those retiring in 2023) (Category A) , it said they would get instruments with a maximum maturity of five years, instead of 15 years, and a 15 per cent coupon rate if they signed up.

“The objective of this is to ensure that individuals, especially retirees, who put their hard earned savings in our domestic market, are not left in hardship as a result of the DDEP and yet contribute to the resolution of our current crisis”, it said.

The statement said the gov­ernment had been intentional in pushing the threshold in order to safeguard the well-being of pensioners; preserve the savings of individuals; protect the working capital of businesses; ensure the health and stability of our financial sector as well as restore macroeco­nomic stability.

It said since the first announce­ment of the DDEP, the govern­ment had engaged all groups, in order to reach a resolution that ensures an orderly path out of the country’s economic challenges.

“We know that these are nec­essary pre-conditions for creating jobs, safeguarding, and enhanc­ing incomes, fostering inclusive growth, and restoring hope to Ghanaians”, it said.

According to the statement, the government had resolved to continue to undertake all necessary fiscal adjustments that would en­sure that our sacrifices will pay-off and the collective good is upheld.

“Let each and every one play their part. These are difficult times, no doubt, but if we hold on to­gether, we can and we will emerge from this more resilient and more united than before. Then we shall, together, continue rebuilding our economy again; and enable busi­nesses to thrive again; and bring back hope and cheer to our homes again” it said.

Ghana in December last year reached a staff-level agreement with the IMF on economic policies and reforms to be supported by a new three-year arrangement under an Extended Credit Facility (ECF) of about US$3 billion.

The approval by IMF manage­ment and the Executive Board in the period ahead is contingent on receiving financing assurances from Ghana’s partners and creditors.

Ghana is targeting to get 80 per cent participation in the DDE pro­gramme, which deadline has been shifted three times, to continue processes to get the approval by March this year.


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