Former Finance Minister Refutes Claims on Coupon Payments to DDEP Bondholders
The immediate past Finance Minister, Dr. Mohammed Amin Adam, has dismissed assertions that the directive to honour the fourth coupon payment to bondholders under the Domestic Debt Exchange Programme (DDEP) was solely initiated by President John Mahama.
Dr. Amin Adam clarified that the previous New Patriotic Party (NPP) administration had already put measures in place to ensure a smooth continuation of these payments. In an article posted on Facebook, the Karaga MP emphasized that the commitment to fulfilling these obligations had long been established by the NPP government.
“The National Democratic Congress (NDC) government has announced that the President has instructed the Finance Minister to make the fourth coupon payment to DDEP bondholders,” Dr. Amin Adam stated. “As per the announcement, this payment is due on Tuesday, February 18, 2025. However, it is important to note that the previous NPP government successfully made three prior payments between August 2023 and December 2024, through a combination of Payment-In-Cash (PIC) and Payment-In-Kind (PIK).”
Strong Foundation for Debt Payments
He further highlighted that the NPP administration had allocated substantial resources to honour these obligations. Between August 2023 and December 2024, a total of GH¢17.25 billion was disbursed in cash payments, while GH¢9.77 billion was settled through in-kind payments. Additionally, individual bondholders who did not participate in the debt exchange programme were paid a cumulative amount of GH¢515.17 million, in line with an agreement between the government and the Coalition of Individual Bondholders.
Dr. Amin Adam emphasized that since the restructuring of domestic debt, the NPP administration had remained committed to timely coupon payments, never defaulting. He also noted that a buffer had been created in the Debt Reserves Account to support upcoming debt servicing, including the fourth coupon payment.
Breakdown of Previous Payments
Providing further insight into the payments made under the NPP government, he detailed:
- First Payment (August 2023): GH¢8.55 billion total (GH¢5.42 billion in PIC, GH¢3.13 billion in PIK)
- Second Payment (February 2024): GH¢9.11 billion total (GH¢5.85 billion in PIC, GH¢3.27 billion in PIK)
- Third Payment (August 2024): GH¢9.35 billion total (GH¢5.98 billion in PIC, GH¢3.38 billion in PIK)
Addressing Misconceptions
Dr. Amin Adam asserted that these consistent payments serve as evidence that the NPP administration laid a solid groundwork for the continuity of the programme. He argued that attributing the fourth coupon payment solely to President Mahama’s directive is misleading.
“The buffers we established were not coincidental. They were part of a strategic plan to ensure that bondholders received their payments on schedule. It is inaccurate to claim that the fourth payment is happening purely because of a new directive from the current administration,” he stressed.
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