On June 30, 2023, the Ministry of Finance will pay all due coupons to members of two groups representing individual bondholders in Ghana.
This follows a memorandum of understanding signed by the ministry and the Individual Bondholders Forum (IBF) and Individual Bondholders Association of Ghana (IBHAG) on May 16, 2023.
The agreement is part of the government’s efforts to restructure its domestic debt and restore economic stability.
The understanding reached by them as follows:
- The Government will complete payment of coupons in arrears, as of 31 May 2023, by 30 June 2023.
- The Government undertakes to pay promptly all coupons that fall due from 1st June 2023,
- Reprofile maturing bonds as and when they fall due into T-Bills at prevailing interest rates
- Distribute the outstanding maturing bonds in the proportion of 35% for 91-Day, 35% for 182-day, and 30% for 364-Day treasury bills.
- The migration of the outstanding maturing bonds into Treasury Bills will be issued using the current mode of issuance mechanics of the Government securities. For the avoidance of doubt, there will be no distinction between the reprofiled Treasury Bills, and the regular Treasury Bills issued by the Government.
- That Government and the CIBG work together in the spirit of mutual understanding to resolve all outstanding issues to meet the immediate cash needs of individuals who did not partake in the DDE programme; give certainty of payments, and efforts toward the restoration of macroeconomic stability and economic recovery.
- The Ministry of Finance will issue an offer memorandum with these terms to all individual bondholders who opted out of the DDEP”.