Wednesday , 8 February 2023

Extending debt exchange deadline will help us consider suggestions

Government has assured of its continuous readiness to consider the inputs of industry players in its domestic debt exchange program. 

It is for this reason, it has extended the expiration date for the program to December 30, 2022.

The Debt Exchange Programme which was expected to expire on Monday, December 19, 2022, has been extended with a contemplated settlement date of Friday, January 6, 2023.

The Ministry of Finance had explained that, the extension date comes on the heels of the announcement of the Staff Level Agreement (SLA) between the government and the International Monetary Fund (IMF) on December 13, 2022

The extension affords the government of Ghana the opportunity to “consider suggestions made by all stakeholders with the aim of adjusting certain measures acceptable within the constraints of the government’s debt sustainability analysis”, the Ministry of Finance said in a press release. 

Many have blamed the government’s lack of constructive consultations with the various unions and associations for the massive opposition to the proposed debt exchange programme.

Several labour unions have kicked against the imposition of cuts on pension funds as part of the debt exchange programme. Organised labour had threatened a public sector shutdown if its concerns over the programme are not addressed. 

“In making this decision to extend, the Republic considered feedback from the financial sector in relation to the need to secure internal approvals“, the statement from the Finance Ministry added.

Terms

The Settlement Date for the Invitation is now expected to occur on Friday, 6 January 2023, or as soon as practicable thereafter, but no later than the Longstop Date which is now scheduled for 13th January 2023, unless further extended by the Republic pursuant to the Invitation. 

The date that the Republic will announce the results of the Invitation is now expected to occur on or about 2 January 2023. 

Moreover, the issue date, interest accrual schedules, payment schedules and amortization schedules for the New Bonds will be adjusted to reflect the actual Settlement Date.

The terms and conditions of the Invitation are not modified or amended.

As set forth in the Exchange Memorandum, the Republic reserved the right in its sole discretion to extend the timetable for the Invitation at any time. 

Any Eligible Holders whose Eligible Bonds are held on its behalf by a broker, dealer, bank, custodian, trust company or other nominee must contact such entity if it wishes to participate in the Invitation, as such entities may establish an earlier deadline to receive instructions to tender Eligible Bonds.

Holders should deliver their offers in connection with their eligible Bonds pursuant to the invitation and no one has been authorised by any of them to make such a recommendation. 

Each holder must make its own decision as to whether to tender their eligible bonds. 

Click here to read the full statement

About Qwobhy

Check Also

Sections of anti-LGBTQ bill unconstitutional

Publication of Covid-19 transaction report premature

The Attorney General and Minister of Justice, Godred Dame has described premature the publication of …