Extended deadline for domestic debt exchange expires today

The Government of Ghana’s deadline for bondholders to join the domestic debt exchange programme expires today, January 16, 2023.

The government started the initiative to invite bondholders to voluntarily exchange about GH137 billion in domestic notes and bonds of the Republic, including ESLA and Daakye, for a bundle of new bonds in an effort to address the nation’s persistent economic woes.

It is currently unknown how many institutions and individuals have agreed to participate in the initiative.

Since its announcement, the domestic debt exchange programme has received fierce criticism from labour unions, which were successful in exempting pension funds.

Individual bondholders who were included after pension funds were exempted have also spoken out strongly against their inclusion.

The issue has put the government in a difficult position.

Meanwhile, the deadline for bondholders to join the domestic debt exchange programme has seen a series of extensions.

The Ministry of Finance announced an extension of the deadline for the domestic debt exchange from December 19 to December 30, with a contemplated settlement date on January 6, 2023.

But it was later extended to a new date.

According to the Ministry, the extension is in response to feedback from the financial sector on the need to secure internal and Executive Board approvals which are necessary considerations for their participation in the exchange.

“The extension also affords government of Ghana the opportunity to consider suggestions made by all stakeholders with the aim of adjusting certain measures acceptable within the constraints of the Debt Sustainability Analysis,” it added

 

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