Mahama Directs Payment of GHS6.081 Billion to DDEP Bondholders

Feb 17, 2025 - 20:13

Feb 17, 2025 - 20:19

Mahama Directs Payment of GHS6.081 Billion to DDEP Bondholders

Accra, Ghana - 17 Feb, 2025 - The Ghanaian government has fulfilled its obligation to domestic bondholders by honouring the Payment-In-Cash (PIC) coupon of GHS6.081 billion under the Domestic Debt Exchange Programme (DDEP).

This move, directed by President Mahama, demonstrates the government's commitment to meeting its debt obligations.

A statement signed by Presidential Spokesperson, Felix Kwakye Ofosu revealed that, in addition to the PIC coupon, the government has also honoured the Payment-In-Kind (PIK) portion of GHS3.46 billion, which has been deposited into the respective bondholders' securities accounts in line with the DDEP Memorandum.

Furthermore, the government has paid GHS9.7 billion into the Debt Service Recovery Cedi Account (Sinking Fund), providing a buffer for the upcoming 5th DDEP coupon due in July and August 2025. This proactive measure aims to ensure the government's continued ability to meet its debt obligations.

''Following a directive from President Mahama, the Ministry of Finance has today, 17th February, 2025 honoured the Payment-In-Cash (PIC) coupon of GHS6.081 billion to all domestic Debt Exchange Programme (DDEP) bondholders.

''Government has also honored the Payment-In-Kind (PIK) portion of GHS 3.46 billion, deposited into the respective bondholders' securities accounts in line with the DDEP Memorandum.

''Additionally, Government has also paid into the Debt Service Recovery Cedi Account (Sinking Fund) an amount of GHS 9.7 billion as a buffer foe the 5th DDEP coupon that will fall due in July and August, 2025,'' portions of the statement read.

The Domestic Debt Exchange Programme (DDEP) is a government initiative aimed at restructuring Ghana's domestic debt to achieve debt sustainability and restore macroeconomic stability.

Launched in December 2022, the program invites voluntary exchange of approximately GHS137 billion of domestic notes and bonds for a package of new bonds to be issued by the Republic.

The DDEP sparked concerns among bondholders, particularly individual investors and pensioners, who rely on the interest income from their bonds.

Read the statement from the Presidency below.