The government and the Ghana Insurers Association (GIA) have agreed on the terms of the Domestic Debt Exchange Programme(DDEP) for insurance companies.
This was announced in a joint statement by the Ministry of Finance and the Association issued on Thursday, January 26, 2023.
The first agreement was that “the insurance companies will participate in the exchange on similar terms as the banks”.
In addition, the government through the solvency window of the Ghana Financial Stability Fund will provide support for the insurance companies that are heavily affected by the exchange programme.
The objective of this is to protect jobs and ensure stability in the insurance industry.
“The GIA is happy to reach a deal with the government that protects its members but also enables the government to push through the necessary economic reforms at these difficult times”.
Recently, the finance ministry and the Ghana Association of Bankers reached an agreement to pay 5% coupon for 2023 and a single coupon rate for each of the twelve (12) new bonds resulting in an effective coupon rate of 9%; clarity on the operational framework and terms of access to the Ghana Financial Stability Fund (GFSF); and the removal or amendment of all clauses in the Exchange Memorandum that empowers the Republic to, at its sole discretion, vary the terms of the Exchange.
View statement below: