Finally, there is an agreement between the government and the Ghana Association of Banks over the Domestic Debt Exchange Program.
The Association had earlier instructed commercial banks to hold off on approving the revised debt exchange offer until its members’ needs were satisfied.
They claimed that the key reason for this was the lack of confidence surrounding how the debt restructuring would affect the banking sector.
In a joint statement, both parties have agreed to “pay 5% coupon for 2023 and a single coupon rate for each of the twelve (12) new bonds, resulting in an elective coupon rate of 9%.
Clarity on the operational framework and terms of access to the Ghana Financial Stability Fund (GFSF) and the removal or amendment of all clauses in the Exchange Memorandum that empower the Republic to, at its sole discretion, vary the terms of the Exchange.”
However, the statement further added that “The GAB recognises the progress made and notes that participation of its member banks in the DDEP, per the new terms, is subject to each individual bank’s internal governance and approval processes, but, in any case, not later than 30th January 2023.”
This is a significant milestone in addressing the country’s current economic challenges as the government races against time to secure an International Monetary Fund (IMF) program to remedy the situation in the country.
Below is a copy of the statement.