Finance

2nd DDEP: Government, banks reach agreement to restructure $1.36bn debt – Report

This is according to a Reuters report which cited three sources familiar with the negotiations.

“They (the banks) understand that they are better off getting a restructuring because we may not be able to pay the coupon,” a finance ministry source told Reuters.

The development by Ghana to conduct a second round of domestic debt restructuring is hinged on a June timeline in order to meet an IMF conditionality deadline with plans to engage external creditors on a debt restructuring exercise.

Despite concluding the first phase of the DDEP back in February this year with about 85 percent of eligible bondholders participating, Ghana now needs to undertake new terms for another GH¢123 billion ($11.18 billion).

This is to enable the country qualify for the second tranche of the $3 billion Extended Credit Facility from the International Monetary Fund.

Reuters sources familiar with the negotiations said the second phase of the DDEP will comprise of domestic dollar bonds, cocoa bills, pension funds and debt owed to the central bank.

They added that the government of Ghana and lenders have agreed to convert about GH¢6.9 billion worth of domestic US dollar bonds into two-term loans at new reduced rates.

In addition to this, Reuters reports that another GH¢8.1 billion worth of cocoa bills will be converted into a new bond at 12 percent yield, although some commercial banks are holding out for 13 percent yield.

As of February 2023, the last cocoa bill issued from the cocoa regulator, COCOBOD had a yield of 32.22 percent.

Reuters however emphasized that a request to comment on the matter by the Finance Ministry and COCOBOD was declined.

Meanwhile, the new terms of the loans have a five-year maturity, starting from 2025, according to the three sources who spoke on condition of anonymity because they are not authorised to speak publicly on the matter.

Source: www.ghanaweb.com

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. In addition to his media ventures, Solomon serves as a Brand Ambassador for Alabuga, a prominent Russian industrial company, representing their interests and expansion across Africa. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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