The Ghana Association of Banks (GAB) say they have advanced on their agreement with the government on their participation in the Domestic Debt Exchange Programme.
A release issued by the Association Monday, January 23, 2023, states unlike the previous agreement, the banks are going to be issued a 5% coupon in 2023.
Also, a 9% rate resulting from a single of each of the 12 new bonds would be given the banks during the year in review.
The agreement has also revoked the initial mandate of the state to vary the terms of the memoranda at its own discretion.
Read below a summary of the full agreement as issued in the statement:
The Government of Ghana and the Ghana
Association of Banks (GAB) have made significant progress on the terms for the participation of Banks in the Domestic Debt Exchange Programme (DDEP).
2. This agreement encompasses final improvements to the terms of the DDEP, namely:
a. An agreement to pay 5% coupon for 2023 and a single coupon rate for each of the twelve (12) new bonds, resulting in an effective coupon rate of 9%.
b. Clarity on the operational framework and terms of access to the Ghana Financial Stability Fund (GFSF).
c. 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.
3. 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.
4. This is a significant milestone towards addressing our economic challenges, and will thus help to restore macro-economic stability and accelerate Ghana’s economic growth.
With this achievement, the Government of Ghana reiterates its commitment to concluding the DDEP in time, with all other stakeholders.
Source: Onuaonline.com|Ghana
