Domestic Debt Exchange Programme Archives

21 Apr

We don’t Have A Problem – CLOGSAG Embraces Govt’s New Debt Exchange Proposal

wontumionlineNewsCLOGSAG, Domestic Debt Exchange Programme

The Civil and Local Government Staff Association, Ghana (CLOGSAG) has opened up to government’s fresh proposals on the alternative offer for pension funds. Executive Secretary Isaac Bampoe-Addo told TV3‘s Labour Correspondent Daniel Opoku on Thursday, April 20 that the new deal will not affect payment of benefits to their members when they retire. “Based on our investment portfolio as Hedge Pension Trust, anytime any of our retirees goes home, we are in a position to pay them their benefits,” he confirmed. “So, I have explained to them that every scheme has got its portfolio [and] our investment portfolio is so robust…

21 Feb

Bonds Constituted 76.4% Of Banks Investments In 2022

wontumionlineBusinessBoG, Bonds, Domestic Debt Exchange Programme, T-Bills

Securities or long-term debt instruments or bonds were the largest components of banks’ investment portfolios in 2022. This is despite the Domestic Debt Exchange Programme. According to the Bank of Ghana, its share increased to 76.4% in December 2022 from 75.3% in December 2021. The share of short-term bills or Treasury bills in total investments, however, declined to 23.3%, from 24.4% over the same comparative period. Also, the share of equity investments remained negligible at 0.3%. Banks investments contracted by 4.8% in 2022 Meanwhile, banks investments contracted by 4.8% to ¢79.2 billion in December 2022 from a growth of 29%…

14 Feb

DDEP Lacks Transparency And Poor Treatment Of Creditor Groups With Banks Said To Lose ¢41.3bn – Report

wontumionlineBusinessDomestic Debt Exchange Programme, Dr Richmond Atuahene

A report conducted by Banking Consultant, Dr. Richmond Atuahene, has revealed lots of inconsistencies and incoherence in the objective of the Domestic Debt Exchange Programme (DDEP). According to the research, a critical review of the implementation of Ghana’s DDEP programme so far clearly showed that there were also lack of transparency and a poor timely flow of information, bad faith and poor treatment of creditor groups and reactive stands, instead of the Ministry of Finance being proactive. “From critical review of the Ghana’s domestic debt exchange, it is not in line with the best principles for fair debt restructuring for…

10 Feb

DDEP: We’ve Reached A Point Where We Have No Choice – Seth Twum Akwaboah

wontumionlineBusinessDomestic Debt Exchange Programme, Seth Twum Akwaboah

The Chief Executive Officer of the Association of Ghana Industries, Seth Twum Akwaboah, says concerning the domestic debt exchange, stakeholders have no other choice than to sign onto it. According to him, without the domestic debt exchange, the country would not be able to access the financial support being offered by the International Monetary Fund and this could lead to devastating consequences for the economy. “We’ve reached a point where we don’t have a choice. So I think that it is generally believed and accepted that the IMF intervention is very critical for us at this stage and it’s also…

09 Feb

DDEP To Weigh On Balance Sheet Of Banks – Fitch Solutions

wontumionlineBusinessBanks, Domestic Debt Exchange Programme, Fitch solutions, Mike Kruninger

The Domestic Debt Exchange Programme is likely to weigh on the balance sheets of banks in Ghana and consequently reduce credit to the private sector, Fitch Solutions has revealed in January 2023 Sub-Saharan Africa Market Update. According to research and market information firm, the reduction in loans particularly to corporate institutions will impact on the real sector of the economy. Senior Country Risk Analyst in charge of Sub-Saharan Africa, Mike Kruninger, said this should be a woke up call to the government. “When talking about access to credit, another factor that I think is really important to mention here is…

08 Feb

Gov’t Needs Better Negotiators And Communicators On The DDEP- Dr. Forkuo

wontumionlineFeatured, News, TrendingDomestic Debt Exchange Programme, Dr. Forkuo

A Lecturer at the Kumasi Technical University, Dr. Solomon Fokuo has urged government to appoint individuals who could negotiate and communicate better with the bondholders, in order for them to subscribe to the Domestic Debt Exchange programme. According to him, he believes the resistance by the bondholders is as a result of lack of consultation. Hence, when the government is able to communicate and negotiate better, cool heads will prevail. Speaking on Movement in the morning show on Movement Tv and Wontumi Radio with Kweku Dawuro, Dr Solomon Forkuo explained that the pensioners and individual bondholders should get to understand…

07 Feb

Debt Exchange: We Are Creating Incentives For Political Elite To Govern, Borrow And Use Anyhow – Bokpin

wontumionlineBusinessDomestic Debt Exchange Programme, individual bondholders, Pensioners, Professor Godfred Bokpin

Professor of Finance and Economics at the University of Ghana Business, Professor Godfred Bokpin, is warning of recurrence of debt restructuring if individual bondholders and pensioners are force to sign onto the Domestic Debt Exchange Programme. According to him, the nation is creating a governance system whereby governments will mismanage the economy and then later resort to debt restructuring. “Look, if we do not correct that canker and we coerce our own people, pensioners and the rest of them, we will go through this and probably less than three years, there may be the need to restructure our debts again”,…

07 Feb

DDEP: Non-Participation Will Prolong Efforts To Revive Economy – Ofori-Atta

wontumionlineBusinessDomestic Debt Exchange Programme, Finance Minister, Ken Ofori Atta

The Finance Minister, Ken Ofori Atta, has warned that non-participation in the Domestic Debt Exchange Programme by individual bondholders will prolong the efforts by the government to revive the economy. Addressing the nation on Monday, February 6, Mr Ofori-Atta said “frankly, non-participation or a lower-than-expected turnout for the DDEP will prolong efforts to resolve the current economic crisis. In addition, the prospects of international financial support and other financial assurances would be jeopardized. This development could further put strain and stress on the Government’s capacity to honour key commitments. This is not what we want for our economy.” He added,…

07 Feb

DDEP: Government Hopeful Bondholders Will Register For Programme

wontumionlineBusinessbondholders, Domestic Debt Exchange Programme

Government is optimistic all bondholders will sign up for the Domestic Debt Exchange Programme, as registration unto the programme expires today, February 7, 2023. This, according to Minister of Finance, Ken Ofori-Atta will ensure macro-economic stability is restored. Addressing Ghanaians on the Monday, he noted that, “As a government, our singular motivation for taking this rather difficult road is to restore macro-economic stability, achieve debt sustainability and get the economy fully back on track. We know that these are necessary pre-conditions for creating jobs; safeguarding and enhancing incomes; fostering inclusive growth; and restoring hope to Ghanaians.” He also cautioned that…

07 Feb

T-Bills: Government To Raise ¢2.76bn This Week

wontumionlineBusiness182-day, 91-day, Domestic Debt Exchange Programme, T-Bills

The government will raise ¢2.76 billion on Friday, February 10, 2023, to refinance Treasury bill maturities worth ¢2.53 billion. This will be issued via the 91-day, 182-day and and 364-day bills. With such a large size on offer, the yields are expected to continue the upward trajectory, but marginally. Following the Domestic Debt Exchange Programme, which has triggered the suspension of the issuance of bonds, the short term securities market remain the only source of borrowing for the government. Consequently, investors have no option than to invest in the treasury market for gains. Last week, the government mobilised ¢1.95 billion…