Government has extended the expiration date of the domestic debt exchange operation to Friday, December 30, 2022, with a contemplated settlement date on Friday, January 6, 2023.
This extension comes on the heels of the announcement of a Staff Level Agreement (SLA) with the International Monetary Fund (IMF) on December 13, 2022.
In a statement issued last Friday by the Finance Ministry, the government said it was their conviction this extension would provide enough time for the necessary consultations and analysis to be completed to meet the expectations of local and foreign institutional bondholders, while preserving the integrity of the Debt Sustainability Analysis and the Staff Level Agreement.
“On December 6, 2022, our domestic debt operation (which we formally refer to as the Invitation to Exchange) was launched. Over the last ten days, we continued the consultation efforts that we initiated with all stakeholders ahead of the launching of the offer, including regulators, bankers, pension funds, asset managers, insurance companies etc,” the statement noted.
It added that “complementing the efforts on the structure of the offer, we are working with the Bank of Ghana and other regulators (SEC, NPRA, and NIC) in the financial sector and our Advisors and including input from various institutions and the unions.”
The statement intimated that the government also fully considered feedback from the financial sector in relation to the need to secure internal and Executive Board approvals, which are necessary considerations for their participation in the exchange.
“This in some instances may require emergency board meetings etc. The extension also affords the 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 pointed out.
“Considering these developments, and taking cognizance of the festive season, we have decided to extend the Expiration Date of the voluntary offer to Friday, December 30, 2022, with a contemplated settlement date on Friday, January 6, 2023,” the statement stressed.
BY Ernest Kofi Adu