Investors remain jittery, await ‘delayed’ revised memorandum of debt exchange programme
Institutional investors along with individual investors await the revised and final memorandum of the domestic debt exchange programme as announced by the Finance Minister, Ken Ofori-Atta last Thursday.
Announcing the exclusion of individual bondholders from the debt exchange programme, as well as agreements reached with the Ghana Association of Banks, Ghana Insurers Association (GIA) and Ghana Securities Industry Association (GSIA), the Finance Minister averred the revised memorandum was to be published on Friday, February 2, 2023.
Despite the assertion by the Finance Minister, the much awaited revised memorandum detailing the final agreements, terms, arrangements, among others is yet to be published by the Finance Ministry.
The delay by the Finance Ministry in putting out the revised memorandum of the debt exchange programme has put investors on edge with questions swirling among market watchers, analysts and investors alike.
Resistance mounted by the Ghana Individual Bondholders Forum (IBF) paid off as government finally excluded individual bondholders from its debt exchange programme.
In a statement issued by the Finance Ministry on Tuesday, January 31, 2023 – the extended deadline for participation of individual bondholders and financial institutions in the debt programme – the Finance Ministry noted that, the decision to exclude individual bondholders was premised on engagements with the leadership of the IBF.
Its decision was also in view of the acceptance of the debt programme by the Ghana Association of Banks (GAB), Ghana Insurers Association (GIA) and the Ghana Securities Industry Association (GSIA).
The Ministry, was on Thursday February 2, 2023, meant to publish a revised and final memorandum on the debt exchange programme to reflect the new agreements made with the GAB, GIA and GSIA as well as the exclusion of individual bondholders from the debt programme.
Despite completely excluding individual bondholders from the debt programme, the Ministry however, offered individual bondholders the opportunity to maintain hold of “existing or old bonds” after the successful rollout of the debt exchange programme.
Per the Ministry, “upon a successful DDEP there will be very few of the ‘old bonds’ in circulation, and likely limit its tradability. In this regard, the Government is pleased to make available the following alternative offer to encourage all individual bondholders to participate in the Exchange”
