DDEP Archives - Wontumi Online

24 Oct

DDEP Saved Ghana About $12bn – Amin Adam

Wontumi1BusinessAmin Adam, DDEP

The Finance Minister, Dr. Mohammed Amin Adam, revealed that the successful execution of the Domestic Debt Exchange Programme (DDEP) has saved Ghana an impressive $12 billion. Dr. Amin Adam made this announcement during a panel discussion at the 2024 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group, held on Wednesday, October 23. The discussion centered on the challenges low-income countries face in managing debt, a critical issue for many nations dealing with financial instability exacerbated by global economic uncertainties and external shocks. The Finance Minister said the DDEP as a pivotal policy initiative in tackling…

19 Sep

DDEP Responsible For La General Hospital Reconstruction Delay – Health Minister

Wontumi1NewsDDEP, Dr Bernard Okoe-Boye, La General Hospital

The Minister of Health, Dr. Bernard Okoe-Boye has cited the Domestic Debt Exchange Programme (DDEP) as the reason for delays in reconstructing the La General Hospital. The government has faced backlash for not rebuilding the hospital, which was demolished in 2020. Addressing journalists in Accra, Dr. Okoe-Boye explained that, the DDEP had disrupted the government’s plans for the project. “Due to the debt exchange programme, many financial institutions pulled out during the global financial crisis, leading to the delay in the La General project,” he said. “President Akufo-Addo then directed the Ministry of Health and the Ministry of Finance to…

05 Sep

Banking Sector Recovering From Post-DDEP – Monetary Policy Report

Wontumi1Businessbanking sector, DDEP

The Bank of Ghana has revealed that the banking sector’s performance in half-year 2024 pointed to continuing recovery from the macroeconomic challenges since 2022. However, asset quality concerns remained a drag on the performance of the sector. According to its July 2024 Monetary Report, the banking sector remained profitable, liquid, and generally efficient during the review period, with stable solvency reflecting the rebound in profitability in the industry post-Domestic Debt Exchange Programme implementation, as well as the ongoing recapitalisation effort by banks. “The outlook remains stable, but recapitalisation and enforcement of stringent credit underwriting standards, and intensified loan recovery efforts…

07 Aug

Secondary Bond Market Improves But Still Below Pre-DDEP Levels

Wontumi1BusinessBond market, DDEP

The secondary bond market activity improved in the first half of 2024 compared to the same period last year, but is still below pre-Domestic Debt Exchange Programme levels. Investors are still focusing more on the money market. According to trading results, market activity improved for Government of Ghana securities, partly due to growing participation from some offshore investors. Additionally, significant improvement and transparency in sell-buyback trades partly benefited secondary market activity. Overall, the market recorded turnover was worth GH¢19.18 billon. Meanwhile, the completion of external debt rework could be beneficial to the Ghanaian secondary bond market. Ghana’s debt restructuring primarily…

04 Jun

Securing IMF Deal Without DDEP Would Have Been Tough – BoG

Wontumi1BusinessBoG, DDEP, IMF

Dr. Philip Abradu-Otoo, the Director of Research at the Bank of Ghana (BoG), has clarified that securing a bailout from the International Monetary Fund (IMF) would have been challenging without the implementation of the Domestic Debt Exchange Programme (DDEP). To stabilise the economy, the government initiated the IMF programme and introduced the DDEP, which resulted in some bondholders experiencing a reduction in their investments and coupons. In 2022, the BoG reported a loss of GHS 60.9 billion due to impairments that occurred during the domestic debt exchange programme. In an interview with Bernard Avle on The Point of View on Citi TV, Dr.…

23 Oct

T-bills Now Constitute Banks Largest Investment Portfolio; Increase To 51% From 17.8% – BoG

Wontumi1BusinessBoG, DDEP, Monetary Policy Report, T-Bills

Investment in treasury bills now constitutes banks largest investment portfolio the Bank of Ghana has revealed in its September 2023 Monetary Policy Report. According to the report, the share of T-bills grew sharply to 51.0% in August 2023, from 17.8% in August 2022. Instructively, the significant increase in the share of short-term investments can be attributable to limited trading on the medium-to-long term instruments because of the Domestic Debt Exchange Programme. Consequently, the share of long-term securities in total investments, declined significantly to 48.8%, from 81.9% over the same reference period. The share of equity investments remained negligible, moderating to…

27 Sep

Government Secures GH₵3.9Bn In Reopened DDEP

Wontumi1BusinessDDEP

The government has secured GH₵3.9 billion in the reopened Domestic Debt Exchange Programme (DDEP), the Ministry of Finance announced on Tuesday. This represents a significant achievement for the government, which is seeking to fully implement its COVID-19 programme for economic growth in the face of the prevailing economic situation. The Finance Ministry in a statement added that, no new tenders will be accepted, and no revocations or withdrawals will be permitted. Meanwhile, the government has set September 29, 2023, as the date for the settlement of the new tranches. The Domestic Debt Exchange Programme is part of the government’s efforts…

31 Aug

Bank Of Ghana’s Vital Task Of Guiding Inflation Back To 8% Target Is Not Hindered – IMF Resident Rep.

Wontumi1BusinessBank of Ghana, DDEP, IMF

The International Monetary Fund (IMF) Resident Representative in Ghana, Dr. Leandro Medina, has said that the Bank of Ghana’s task of guiding inflation back to its 8 percent target in a gradual manner is not hindered by its participation in the Domestic Debt Exchange Programme (DDEP). He said the BoG’s participation in the DDEP formed part of efforts to burden-share the load placed on government and banks. Speaking in an interview with the B&FT newspaper, Dr Medina noted that an IMF analysis showed that “this situation does not hinder the BoG from effectively executing its policy mandates, including the vital…

24 Aug

DDEP: Govt Reiterates Its Commitment To Honour All Future Payment Obligations

Wontumi1BusinessDDEP

The Government of Ghana has expressed its profound appreciation to all stakeholders, especially bondholders who voluntarily responded to the national call and participated in the Domestic Debt Exchange Programme (DDEP). The Finance Ministry said in a statement that under the terms and conditions of the DDEP, which was launched on 5th December, 2022, to complement Government’s fiscal programme, the first coupons of the tendered bonds were due on 22nd August, 2023. Accordingly, on Tuesday, 22nd August, 2023, Government honoured its commitment and fully settled the first coupon due from the DDEP, in the amount of GH¢ 2,369,667,190.18, approximately 2.4 billion Ghana Cedis. “The…

21 Aug

Impact Of DDEP Impairment Losses On Banking Sector And Role Of Ghana Financial Stability Fund – The Case Of Local Banks

Wontumi1BusinessBoG, DDEP, Ghana Financial Stability Fund, IMF, local banks, Ministry of Finance, World Bank

The Ghanaian financial sector has been in severe distress, characterised by an insolvent banking system as result of the domestic debt exchange in 2022. Using the 16% discount rate for the Net Present Value calculation for government bonds, the Domestic Debt Exchange Programme losses of 22 banks stood at ¢37.7 billion with the private domestic banks and state-owned banks accounting for losses of ¢19.9 billion, while foreign owned banks accounted for ¢17.8 billion. The DDEP impairment losses have technically rendered some of Ghanaian local owned banks insolvent that would require additional capital support from shareholders or participate fully in the…