Debt-to-GDP ratio, a large stone with text DEBT and wooden cubes with GDP letters and bag on seesaw
US-based Associate Professor of Finance at Andrews University in Michigan, Williams Peprah, says a 70% achievement of the Domestic Debt Exchange Programme will be good for the government’s quest to successfully restructure the country’s debt.
According to him, his analysis of the data shows that the programme has largely been successful.
Speaking to Joy Business, Professor Peprah said majority of the entire debt portfolio of government comes from institutional investors who signed up for the programme.
“I know what the Minister [Ken Ofori-Atta] said regarding pegging the 80% target; the figure I’ve seen was basically based on institutional investors. The additional 5%, probably they were thinking that they will get some of the individual investors to sign onto the pack”
“If you look at the entire portfolio, more than 82% are in the hands of institutional investors. A little bit is in the hands of individual investors, 1.3% is in the hands of pension funds which were exempted”, he added.
He further said that the government is likely to achieve about 78% of the DDEP target.
“So my guess is that the 70% is good. I’m thinking that government will probably report about 75% to 78% of the Domestic Debt Exchange Programme and this is coming mainly from institutional investors”, he added.
The administrative deadline for the DDEP ended on Friday, February 10, 2023.
Joy Business understands that the government achieved a little above its target.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
