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 80 per cent voluntary participation of all bondholders excluding pension funds by 10th February, 2023.
Of the GH¢130 billion bonds to be restructured, more than 24% are expected to mature in 2023 with maturity dates between 6th February and 18th December.
The month of February alone holds about GH¢7.79 billion worth of GoG Bonds expected to mature on the 6th and 20th of February, 2023. By end of the first half of 2023, bonds worth GH¢16.54 billion will mature, but Finance Minister, Ken Ofori-Atta has different plans of paying them at a later date, starting in 2027.
An analysis of data contained in the Finance Ministry’s Exchange Memorandum document shows bonds which were supposed to mature on 6th February 2023 are still not excluded from the current invitation to exchange.
Although government has been able to reach a deal with three groups: the Ghana Association of Bankers, Ghana Insurers Association and the Ghana Securities Industry Association to participate in the DDEP, individual holders of government bonds including retirees have rejected government’s ‘better offer’ and are insisting on total exemption.