The Ministry of Finance has begun the process of settling the first coupon payment of bonds affected by the domestic debt exchange program (DDEP).

The Ministry said the matured coupons amount to GHC 2.4 billion, and instructions have already been sent for settlement.

In an effort to reorganize Ghana’s unmanageable debt load, the DDEP was started in 2022.

A new bond with a lower interest rate and a longer maturity period could be exchanged for an older bond by eligible bondholders under the scheme.

It was decided that the impacted bonds’ coupon payment would be 5%, which was less than the interest rates on the previous bonds.

The Ministry of Finance has allayed these fears by stating that the settlement of the first coupon payment is consistent with the government’s commitment to the continued success and credibility of the country’s domestic debt operations. Nevertheless, there were initial market uncertainties about whether the government would be able to make the 5% coupon payment.

The ministry also pointed out that the new DDEP-issued bonds currently control the majority of the domestic bond market.