The Director of Communications for the New Patriotic Party (NPP), Richard Ahiagbah, has stated that the previous Akufo-Addo administration honored bondholders of the Domestic Debt Exchange Program (DDEP) with three coupon payments.
According to Richard Ahiagbah, the NPP government gave bondholders a total of GHS9.77 billion in Payment-In-Kind (PIK) and GHS17.25 billion in Payment-In-Cash (PIC).
Additionally, he stated that in accordance with the Memorandum of Understanding between the Government and the Coalition of Individual Bondholders, coupons of GHS515.17 million were paid to those who did not tender their bonds at different points between 2023 and 2024.
The former NPP administration has not had a coupon default since the restructuring of the domestic debts, the NPP Director of Communications emphasized. In order to cover future debt service commitments like the fourth coupon payments, buffers were also created in the Debt Reserves Accounts.
Richard Ahiagbah’s remarks coincide with the Mahama administration’s announcement that the fourth DDEP coupon had been successfully settled.
Richard Ahiagbah said, “According to the NDC Government, the President has instructed the Finance Minister to honor coupon payments to holders of DDEP bonds. This will be the fourth coupon payment, which is due on Tuesday, February 18, 2025, as stated in the notification.
Thus, from August 2023 to December 2024, the former NPP Government honored three prior contributions in both cash and kind.
The NPP government gave bondholders a total of GHS9.77 billion in PIK and GHS17.25 billion in PIC. Additionally, in accordance with the Memorandum of Understanding between the Government and the Coalition of Individual Bondholders,coupons of GHS515.17 million were given to bondholders who chose not to tender their bonds at different points throughout 2023 and 2024. Coupon defaults have not occurred under the previous NPP government since the restructuring of the domestic debts. In order to cover future debt service commitments like the fourth coupon payments, buffers were also created in the Debt Reserves Accounts.
The Breakdown of the payments as follows:
1st Payments: August 2023 Total payment – GHS8.55 billion
(PIC – GHS5.42 billion & PIK deposit – GHS3.13 billion)
2nd Payments: February 2024 Total payment – GHS9.11 billion (PIC – GHS5.85 billion &
PIK deposit – GHS3.27 billion)
3rd Payments: August 2024 Total Payment – GHS9.35 billion
(PIC – GHS5.98 billion & PIK deposit – GHS3.38 billion).
