DDEP: New revision makes terms more complex, some bondholders will not sign on - Simons

With less than 48 hours to the deadline of the debt exchange programme, Bright Simons has offered a breakdown of the progress the governemnt has made so far.

According to him, banks and insurance companies, upon the agreement reacbed with the government are "hooked".

However, after the agreement with the government, the new terms of the programme will see interests deferred to after 2025.

Also, old bonds interest that are due on February 14, 2023 have been deferred.

Bright Simons is therefore of the view that since the governement seemed to be in a rush and did not allow for broader consensus, a "majority of pensioners, overseas holders and individual will not sign on".

"This saga has yielded plenty governance lessons. How the banks buckled so easily for example. How holdouts held on, making this the least successful DDE in world history. And how the govt still got billions in relief with no prior consultations. Ghana must now brace for impact," he added.

Meanwhile, individual bondholders have stated that despite the ammended terms of the programme, they want a total exemption.

Also, pensioner bondholders picketed the Finance Ministry on February 6, 2023, to demand their exemption from the programme.

1/

48 hours to deadline of Ghana's debt exchange program, where are we?

A. The govt's hardball tactics have the banks & insurance companies hooked

B. The latest offer will see part of new bonds' interest deferred until after 2025.

C. Old bond interest due b4 Feb 14 also deferred pic.twitter.com/HnfNMRuCYj

— Bright Simons (@BBSimons) February 6, 2023

2/

Each new revision has made the terms more complex. Though the govt has made concessions, the rush & refusal to co-create prevented broad consensus. So come 7th Feb, the majority of pensioners, overseas holders & individuals will not sign on. Participation will thus be < ~70%. pic.twitter.com/vFC9rQOiVV

— Bright Simons (@BBSimons) February 6, 2023

3/

This saga has yielded plenty governance lessons. How the banks buckled so easily for example. How holdouts held on, making this the least successful DDE in world history. And how the govt still got billions in relief with no prior consultations. Ghana must now brace for impact pic.twitter.com/hmnhh0eKqG

— Bright Simons (@BBSimons) February 6, 2023