Finance Minister Ken Ofori-Atta has announced that the government is entering a new phase of the Domestic Debt Exchange Programme (DDEP), which will now target pension funds and various energy sector liabilities, including debts owed to Independent Power Producers (IPPs).
During the mid-year budget review, the Minister explained that while previous debt operations provided critical fiscal breathing room, further restructuring of instruments like cocoa bills, local US dollar-denominated bonds, and Bank of Ghana non-tradable debt is essential to achieving long-term debt sustainability.
The government is also actively negotiating with external creditors through the G20 Common Framework and has begun discussions with Eurobond investors, with the goal of reaching a final agreement by the end of the year.
To protect the domestic financial system from the resulting liquidity and solvency risks, the Ministry of Finance is working with international partners to establish the Ghana Financial Stability Fund, which will provide a necessary safety net for banks and insurance companies impacted by impairment losses.
Despite the government’s push for a new “alternative offer,” organized labor remains firmly opposed to the inclusion of retirement savings. Dr. Yaw Baah, Secretary-General of the Trades Union Congress (TUC), has maintained that the labor front’s position has not changed and has urged pension fund trustees to reject further engagement on the matter to protect workers’ investments.