Relief for bondholders: Gov’t vows to settle payments in 2 days
In a bid to address concerns raised by bondholders who did not subscribe to the Domestic Debt Exchange Programme (DDEP), the Government of Ghana has assured them that processes have begun to settle payments on outstanding bonds.
The Ministry of Finance, in a statement released on Tuesday, March 14, said that the processes commenced on Monday, March 13, 2023.
The Ministry of Finance had earlier given assurances to bondholders that matured coupons and principals would be paid on the set date.
However, after the set date, some aggrieved bondholders raised concerns about non-payment.
The Ministry of Finance has now confirmed that it has begun the payment process for coupon and principal payments on bonds that matured on February 6th, 2023, and February 13th, 2023.
Bondholders of these listed bonds have been assured that they will receive their payments within the next 48 hours.
The Ministry of Finance further assured bondholders that payment dates for subsequent maturities will be communicated as processing continues.
The government expressed gratitude to all stakeholders for their patience and forbearance during the DDEP and subsequent administrative processes.
The DDEP was launched in November 2022 by the government as part of measures to restructure the country’s debt portfolio. The programme involved the exchange of existing domestic debt securities for new bonds with longer maturities and lower interest rates.
The DDEP aimed to reduce the government’s debt service burden and improve the country’s fiscal sustainability.
However, some bondholders who did not participate in the programme have raised concerns about the non-payment of matured coupons and principals on the set date. The government has now taken steps to address these concerns by beginning the payment process.
The assurance by the Ministry of Finance to bondholders will go a long way in boosting investor confidence in the country’s debt market.
The timely payment of matured coupons and principals is crucial for the smooth functioning of the market and is a key factor in attracting future investments.