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NewsDDEP: Govt must have a dialogue with bondholders over troubling impacts of...

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DDEP: Govt must have a dialogue with bondholders over troubling impacts of programme – NAPO

Vice presidential candidate for the New Patriotic Party (NPP), Dr. Matthew Opoku Prempeh (NAPO), has called for open dialogue between the government and bondholders affected by the Domestic Debt Exchange Programme (DDEP)

The DDEP, a government-initiated plan launched in 2022, was aimed at tackling Ghana’s significant debt challenges by swapping higher-interest bonds for lower-interest, long-term alternatives. 

This programme saw around 95% of local bondholders voluntarily agree to revised terms, including extended maturities and reduced coupon rates, in an effort to aid the government’s financial restructuring efforts.

In a recent media interview, Dr. Prempeh praised the bondholders’ sacrifices, highlighting their role in stabilising the economy and securing the much-needed $3 billion International Monetary Fund (IMF) bailout, which was instrumental for Ghana’s recovery. 

He noted that without their compliance, the IMF’s approval and subsequent foreign investor confidence would have been unlikely. He stated, “If they hadn’t agreed for us to exchange their 95% bonds, we couldn’t have gone through the restructuring process with the IMF, and the foreign bondholders would not have followed for us to achieve this result.”

While the DDEP has been credited with saving the economy from potential collapse, it has brought financial strain to many investors who had anticipated unrestricted access to their savings. 

Dr. Prempeh urged the government to ensure that the phased repayment plans scheduled to begin in 2026 proceed as planned, as bondholders are still dealing with financial instability.

In light of public concerns, he questioned the necessity that led notable individuals, including retired Chief Justice Sophia Akuffo, to join protests demanding financial justice.

For many, the DDEP’s restrictions have raised questions about financial security, as savings intended for personal use have become temporarily inaccessible. 

Dr. Prempeh acknowledged the widespread hardship and described it as “deeply troubling,” calling for increased government engagement with affected citizens to address their grievances and alleviate the economic burdens caused by DDEP.

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