Debt exchange Archives - Wontumi Online

08 Feb

Debt Exchange: Over GH¢31bn Of Bonds To Be Restructured Will Mature This Year

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GH¢31.31 billion; that’s the total value of Government of Ghana (GoG) Bonds that will mature in 2023, but all of which the government is hoping to enrol on the Domestic Debt Exchange Programme (DDEP). Registration for enrolling onto the programme ends on 10th February 2023. To obtain a $3 billion bailout package from the IMF, Ghana is expected to take steps to restructure its unsustainable debt, which currently stands at GH¢575.7 billion (as of November 2023), and about 93.5% of GDP. In total, government is seeking to restructure about GH¢130 billion of its domestic debt with a success rate of…

01 Feb

Debt Exchange: Don’t Argue With Emotions – John Kumah To Bondholders

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The Deputy Finance Minister, John Kumah, has urged bondholders to desist from emotional arguments as government undertakes the Domestic Debt Exchange Programme (DDEP). According to him, the programme is a necessary one that needs to be implemented to resuscitate the failing economy of the country. Prior to Mr Kumah’s statement on Joy FM’sSuper Morning Show, the Convener of the Individual Bondholders Forum, Senyo Hosi and the President of the National Association of Graduate Teachers (NAGRAT), Angel Carbonu had been engaged. Senyo Hosi, in his argument for all individual bondholders, said the government was “close to being dishonest” with stakeholders on the…

31 Jan

Debt Exchange: NIC To Suspend Minimum Capital Requirements, CAR Of Insurance Firms For 2 Years

wontumionlineBusinessCapital Adequacy Ratio, Debt exchange, MCRs, NIC

As part of measures to mitigate the impact of the Domestic Debt Exchange Programme on insurance companies, the National Insurance Commission will place a moratorium on the Minimum Capital Requirements (MCRs) and Capital Adequacy Ratio (CAR) on the insurers. This means the MCR and CAR will not be enforced but regulated entities will be required to operate in such a way so as to be able to pay claims and operating expenses. The current minimum capital requirement of life and non-life Insurance companies is ¢50 million, whilst the CAR is 14.2%. In a letter to the insurance firms on draft…

27 Jan

Debt Exchange: Bright Simons Describes Agreement With Insurers As Landmark

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A Vice President of Imani Africa Bright Simons has described the agreement between the government of Ghana and the Ghana Insurers Association regarding the dept exchange participation as landmark. In a tweet, Mr Simons said “In a spectacular breakthrough, the government of Ghana reaches landmark deal with insurance firms, further increasing the debt exchange participation rate and the overall debt and liquidity relief. However, this is on the basis of access to a Fund that so far has limited prospects.” https://twitter.com/BBSimons/status/1618686365667049473?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1618686365667049473%7Ctwgr%5Ea869120831b42e98f64ada0bdf7e78433fc7b760%7Ctwcon%5Es1_&ref_url=https%3A%2F%2F3news.com%2Fdebt-exchange-bright-simons-describes-agreement-with-insurers-as-landmark%2F Under the agreement, insurance companies will participate in the exchange on similar terms as the banks, a…

16 Jan

Debt Exchange: Upper Middle Class Will Look For Investment Options Abroad, Causing More Problems For Ghana – Bright Simons

wontumionlineBusinessDebt exchange

A Vice President of Imani Africa Bright Simons has said that the upper middle class in Ghana will now opt for more investment opportunities abroad due to the domestic debt exchange programme that has been introduced in Ghana by the Finance Minister Ken Ofori-Atta. In a tweet, he said “Folks all fired up about how the economic situation will now push upper middle class folks to join the political fray for more accountability. “Sorry to burst your bubble, but it will just push them to look for more investment options abroad, causing more economic [problems]for Ghana.” https://twitter.com/BBSimons/status/1614650296730255361?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1614650296730255361%7Ctwgr%5E9c4d887ebad95fa90fb5c26cb9793c9de7468c21%7Ctwcon%5Es1_&ref_url=https%3A%2F%2F3news.com%2Fdebt-exchange-upper-middle-class-will-look-for-investment-options-abroad-causing-more-problems-for-ghana-bright-simons%2F Regarding he debt exchange,…

16 Jan

Debt Exchange: There Will Be Losses And Should Be Accounted For – ICAG

wontumionlineBusinessDebt exchange, IASB, ICAG, Public Financial Management System

Government has been charged to ensure that the International Financial Reporting Standards (IFRS) is complied with if it goes ahead to implement the Domestic Debt Exchange Programme. According to the Institute of Accountants Ghana (ICAG), even though its effect on individuals and businesses cannot be ruled out, the programme must adhere to the London-based Accounting Standards Board (IASB) and address record keeping, account reporting, and other aspects of financial reporting. “ICA Ghana has made submissions already in the process and some of the submissions are tilted to the fact that the debt restructuring will definitely have implications for financial reporting,”…

10 Jan

Kpebu, Simons Take Government On Over Debt Exchange

wontumionlineBusinessDebt exchange

Private Legal Practitioner, Martin Kpebu is leading about 200 individual investors to engage the government over the inclusion of individual bondholders in the debt exchange programme. Mr. Kpebu noted that these investors do not want any haircut on their matured investments. Speaking in a radio interview monitored by the Graphic Business, he said a class action lawsuit against government will follow if negotiations fail. A notice inviting affected individuals to join the class action suit described the government’s decision as “unconscionable”. It said, “Government cannot be allowed to use its might to impoverish Ghanaians.” It would be recalled that days…

10 Jan

Debt Exchange: 3 Groups Representing Individual Bondholders To File Legal Suits Against Government – Bright Simons

wontumionlineBusinessBright Simmons, Debt exchange, individual bondholders, legal suits

Vice President of IMANI Ghana, Bright Simons, has revealed that three groups representing individual bondholders have commenced mobilisation to file legal suits against the government for including individual bondholders in the Debt Exchange Programme. According to him, one of such groups is led by a former boss of the Securities and Exchange Commission (SEC). The Finance Ministry had earlier cautioned individual holders of eligible bonds who refuse to take the Amended and Restated Exchange Memorandum under the Debt Exchange Programme provided by the State that they will find it difficult to obtain a judgement against the Government of Ghana. Under…

04 Jan

Government Pays 18.5% Interest On 2-year Note Despite Debt Exchange Programme

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Despite announcing a debt restructuring programme which will affect interest payments in 2023, government has made a coupon payment on a treasury note that matured on Tuesday, January 3rd, 2023. The coupon payment on the government instrument was 18.5%. Joy Business understands that the interest payment was honoured because the domestic debt exchange is yet to fully take off. The programme has been postponed twice with the latest deadline being January 16, 2023. Government is also expected to honour other interest payments on other debt instruments that are expected to mature before or on January 16, 2023. In the Amended…

28 Dec

Debt Exchange: Financial Sector Will Collapse If Government Adds T-bills – Economist

wontumionlineBusinessDebt exchange, Financial Institutions, Financial Sector, Professor Godfred Bokpin, T-Bills

Economist and Professor of Finance at the University of Ghana Business School, Professor Godfred Bokpin is warning of the collapse of the financial sector if government includes Treasury bills in the debt exchange programme. He, however, does not expect the government to rope in Treasury bills into the debt exchange programme because that is its only source of borrowing. Speaking on the Joy FM Super Morning Show, Professor Bokpin expressed unhappiness about the inclusion of individual bondholders in the debt exchange programme, describing the move as a wholesale approach. “If you look at the financing landscape right now, that [T-bills]…