Politics

Government committed to its obligations under DDEP – Deputy Finance Minister

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A Deputy Finance Minister, Dr John Kumah, has assured Ghanaians that the government is committed to honouring its obligations under the Domestic Debt Exchange Programme.

According to the Ejisu MP, the government is focused on ensuring the successful implementation of the programme for the smooth recovery of the economy.

Speaking in an interview with Citi FM on Tuesday, August 22, the Deputy Minister said the Finance Ministry’s instruction for the settlement of ¢2.4 billion of the first coupon payment on bonds occasioned by the DDEP on August 27 and August 28, respectively proves the government is committed to this course.

He thus commended the government and urged the citizens to support the government in its efforts to revive the ailing economy.

“This 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.”

“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.”

Currently, government is expected to settle ¢2.4 billion of the first coupon payment on bonds occasioned by the controversial Domestic Debt Exchange Programme.

This, the Minister of Finance, Ken Ofori-Atta, says is in line with the government’s commitment to the continuous success and credibility of Ghana’s domestic debt operations.

The bonds that are expected to mature in 2027 as indicated in the memorandum documents were originally expected to mature in 2023. They are in all the category bonds that are Category A Bonds, Category B Bonds, and the General Category Bonds.

Whilst the coupon or interest rates of the August 27, 2023 bonds are going for 14.13% and 15.00%, that of the August 28, 2023, are currently priced at 10% and 15% respectively.

However, the Finance Minister in a tweet says, “New bonds now stand as the dominant instruments in our domestic bond market, laying the basis for rapid recovery.”

“We remain committed to the success of the new bonds, and again thank all those who participated in the DDEP for their sacrifices”.

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