The government, through the Ministry of Finance, has begun the process of settling the first coupon payment of bonds affected by the domestic debt exchange programme (DDEP).
The Ministry said in a statement that the matured coupons amount to GHC 2.4 billion and that instructions have already been sent for settlement.
A new bond with a lower interest rate and a longer maturity period could be exchanged for an older bond by eligible bondholders under the programme.
It was decided that the affected bonds’ coupon payment would be 5%, which was less than the interest rates on the previous bonds.
The Ministry has also allayed the concerns of those who have wondered if the 5% could be met due to the uncertainties on the market by stating that the settlement of the first coupon payment is consistent with the government’s commitment to the continued success and credibility of the country’s domestic debt operations.
Aside from that the new bonds that were issued under the DDEP now stand as the dominant instruments in the domestic bond market, the Ministry added.