Adnan Adams Mohammed
Government has reopened the Domestic Debt Exchange Program (DDEP) which was closed in Febuary this year dubbed “February 2023 Exchange” to extend invitation to bondholders not yet on program.
The reopening offers direct invitation to E.S.L.A. Plc and Daakye Trust Plc bondholders to participate in the Government of Ghana debt restructuring program.
The Ministry of Finance, in a press statement released last week, encouraged holders of domestic notes and bonds to actively consider and accept this invitation. The ministry explained that, this invitation aims to provide an opportunity for holders who were unable to participate in the February 2023 exchange due to various delays or reasons.
“This reopening invites holders of domestic notes and bonds from the Republic of Ghana, specifically those of E.S.L.A. Plc and Daakye Trust Plc, to exchange their eligible bonds”, the statement said.
“In return, they will receive a package of new tranches of the same bonds issued by the government, known as the “New Bonds,” which were part of the February 2023 Exchange. This renewed invitation is referred to as the “Invitation.”
The release also emphasized that, this invitation is exclusively available to registered holders of Eligible Bonds who are not Pension Funds.
However, it noted that, if you have previously tendered Eligible Bonds in either of the two prior GHS-denominated invitations for exchange conducted by the Government in 2023, namely the February 2023 Exchange or the Pension Fund Alternative Offer in August 2023, you are no longer eligible to participate in this Invitation and are no longer considered an Eligible Holder.
The Domestic Debt Exchange Program was initiated in December 2022 with the objective of restoring Ghana’s capacity to manage and service its debt.
This new opportunity allows bondholders to reconsider their holdings and participate in the exchange, contributing to the government’s debt management efforts.
Meanwhile, Pensioner Bondholders have swiftly declared their intention not to be part of the government’s fresh Domestic Debt Exchange Programme (DDEP) for ESLA and Daakye Bondholders.
In a radio interview, last week, the Convener for Pensioner Bondholders, Dr Adu Anane Antwi, explained that no pensioner is available to accept the government’s offer.
He stated that pensioners cannot be part of the newly announced offer, emphasising that they have been exempted.
“No pensioner bondholder can ever be targeted, because we have been exempted totally. We don’t have anything to do with this exchange at all. We are not part of it. There’s no pensioner available now for an offer to be made to, simple as that. There’s nobody in category B who is there for the offer, and says I wanted to go in, but I didn’t have the opportunity to go in so now, I’m going in. So category B shouldn’t be in this document at all.
“The government cannot overturn its own decision to exempt us. It is in the records of parliament, we have a letter, we have been exempted, and it’s not based on any condition, it’s an unconditional exemption. Government cannot go anywhere”.
Dr Adu Anane chastised the Ministry of Finance for lacking an understanding of the new DDEP, adding that they will organise a press conference in the coming days to give a proper explanation on the issue.
“I believe they [government] didn’t get the understanding well, they haven’t analysed things well. If you analyse the situation, the person who was writing the memorandum of exchange should have known that there were no Category B holders available for that offer. They have already accepted. We will have a press conference and explain to the people who are handling this matter that they are wrong. They didn’t understand the concept well,” the Convener of Pensioner Bondholders said.
Also, An economist, Dr John Gatsi, has said bondholders cannot be compelled to be part of ESLA and Daakye Trust.
“If there’s any call for people to surrender for Daakye PLC and ESLA, it should not include those who have already indicated that they will not be part. Nobody can be compelled to go into a debt exchange programme. DDEP is a voluntary offer if people refuse to be part, they have not offended any law,” Prof Gatsi stated.
