Gov’t launches DDEP; anticipates ‘overwhelming support’ for debt programme
Minister for Finance, Ken Ofori-Atta, has on Monday, December 5, 2022, launched the government’s Domestic Debt Exchange Programme (DDEP).
Launching the debt programme, the Finance Minister noted that the government expects overwhelming support for the domestic debt exchange programme, asserting that the success of the programme is dependent on the cooperation of the investing public.
“This debt exchange programme provides an orderly way to put our economy back on track,” said the Minister during the launch.
Mr Ofori-Atta said the domestic debt exchange programme is the surest way to restore the economy back on track to create jobs and protect the incomes of Ghanaians.
“The government will take all appropriate measures to safeguard the solvency of the financial institutions involved in the debt exchange.
“The government has been working hard to limit the impact of the domestic debt exchange on investors holding government bonds,” he remarked.
“Let us remove any doubt and remove any speculation that the government is about to cut your retirement savings or the notional value of your investment,” he added.
Meanwhile, the Finance Minister has revealed plans by government to set up a Financial Stability Fund (FSF) with the sole purpose of minimizing the impact of government’s domestic debt exchange programme on the financial sector.
According to the Finance Minister, the FSF established with the help of development partners will provide liquidity support banks, pension funds, insurance companies, fund management companies in the country.
This, he noted in a televised address on Sunday, December 4, 2022, is to ensure that the financial institutions meet their obligations to the Investing public.
“Government recognizes that our financial institutions holds a substantial proportion of these bonds. As such the potential impact of this exchange on the financial sector has been assessed by their respective regulators.
“Working together, these regulators have pout in place appropriate measures and safeguards to minimize the potential impact on the financial sector and to ensure that financial stability is preserved.
“A Financial Stability Fund is being established by government with the help of development partners to provide liquidity support to banks, pension funds, insurance companies, fund managers and collective investment schemes to ensure that they are able to meet their obligations to clients as they fall due,” quipped the Finance Minister.
