Government is expected to announced the second round of the Domestic Debt Exchange Programme (DDEP) before the Finance Minister presents the Mid-Year Budget Review
The second round of the Domestic Debt Exchange Programme (DDEP) will target an exchange of about GH¢122 billion of outstanding domestic debts.
This will comprise cocoa bills, the exempted bonds held by the pensions sector, US dollar-denominated local bonds and non-marketable debts held by the Bank of Ghana.
While organised labour has hinted at rejecting attempts to rope pension funds back into DDEP following the earlier exemption, it appears prior negotiations are ongoing in the background ahead of the imminent announcement. This can enhance the chances of success.
A successful exchange under the second leg of DDEP, many analysts believe, will enhance the interest savings from DDEP, improve the near-term fiscal outlook and create the much-needed fiscal space for growth-enhancing spending.
The government in February 2023 announced that approximately 85% of eligible bondholders participated in the DDEP.
This result it said is a significant achievement to implement fully, the economic strategies in the post-COVID-19 Programme for Economic Growth (PC-PEG) during this current economic crisis.
The successful completion of the DDEP paved the way for further discussions with the International Monetary Fund which enable the country to secure a Fund-support programme.
Whilst it awaits an agreement with its external creditors, particularly the Paris Club, the government is expected to conduct a second round DDEP. This will enable the smooth progress of the IMF support programme.