Stabilization Fund to be established for Securities Industry under DDE deal
The Government of Ghana has reached an agreement with the Ghana Securities Industry Association to participate in the Domestic Debt Exchange programme, according to sources.
The terms for the association will be similar to those previously agreed upon by banks and insurers, including a 5% coupon payment and 9% for 12 new bonds to be issued.
A stabilization fund will also be established for the industry. There are reports that the government may propose new terms for individuals with investments in collective schemes and mutual funds, and favorable terms for individual bondholders are expected to be announced soon.
This development marks progress in ongoing negotiations with various categories of bondholders, but the impact on discussions with individual bondholders and pensions is yet to be seen.
The government is said to be content with the situation and hopes it will align with other deals currently being brokered with associated groups.
