The immediate past Finance Minister, Dr. Mohammed Amin Adam, has rejected assertions that the fourth coupon payment to Domestic Debt Exchange Programme (DDEP) bondholders was solely due to a directive from President John Mahama.
He clarified that the previous New Patriotic Party (NPP) administration had already put measures in place to ensure the smooth continuation of these payments.
“The NDC Government has announced that the President has directed the Minister for Finance to honour coupon payments to DDEP bondholders,” the Karaga MP stated in a Facebook post on Monday (17 February).
“As reported in the announcement, this will be the fourth coupon payment due on Tuesday, 18th February 2025.
“This means the previous NPP Government honoured three previous payments both in Payment-In-Cash (PIC) and Payment-In-Kind (PIK) between August 2023 and December 2024.”
Dr. Amin Adam emphasized that the NPP government had committed significant financial resources to ensure bondholders were paid, noting that between August 2023 and December 2024, a total of GH¢17.25 billion in PIC and GH¢9.77 billion in PIK was disbursed.
He further highlighted that individual bondholders who did not tender their bonds were paid GH¢515.17 million, as per an agreement between the government and the Coalition of Individual Bondholders.
“Since the restructuring of the domestic debts, the previous NPP government has not defaulted in coupon payments.
“Buffers were also built in the Debt Reserves Accounts to support upcoming debt service obligations such as the fourth coupon payment,” Dr. Amin Adam noted.
Outlining the payments made under the NPP administration, he provided the following breakdown:
- 1st Payment (August 2023): GH¢8.55 billion (PIC – GH¢5.42 billion, PIK – GH¢3.13 billion).
- 2nd Payment (February 2024): GH¢9.11 billion (PIC – GH¢5.85 billion, PIK – GH¢3.27 billion).
- 3rd Payment (August 2024): GH¢9.35 billion (PIC – GH¢5.98 billion, PIK – GH¢3.38 billion).
He insisted that the consistent payments demonstrated that the NPP government had already set a clear path for the continuity of the programme, making it misleading to credit the fourth coupon payment solely to President Mahama’s directive.
“The buffers we built were not accidental. We planned ahead to ensure that bondholders receive their payments on time. It is, therefore, misleading for anyone to suggest that this payment is happening simply because of a new directive from the current administration,” he added.
Read Dr Amin Adam’s Facebook post below
4th DDEP Coupon Payments
The NDC Government has announced that the President has directed the Minister for Finance to honour coupon payments to DDEP bondholders. As reported in the announcement, this will be the 4th coupon payment which is due on Tuesday 18th February, 2025. This means the previous NPP Government honoured 3 previous payments both in Payment-In-Cash (PIC) and Payment-In-Kind (PIK) between August 2023 and December 2024.
The NPP government paid a total of GHS17.25 billion in PIC and GHS9.77 billion in PIK to bondholders. Also, individuals who did not tender their bonds were paid coupons amounting to GHS515.17 million at various times between 2023 and 2024, in line with the MoU signed between the Government and the Coalition of Individual Bondholders.
Since the restructuring of the Domestic Debts, the previous NPP government has not defaulted in coupons. Buffers were also built in the Debt Reserves Accounts to support upcoming debt service obligations such as the 4th coupon payments.
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).
