Gov’t rules out compensation for bondholders hit by DDEP haircuts

Government Rules Out Compensation for Bondholders Hit by DDEP Hairc The government has officially ruled out any form of compensation for bondholders who suffered losses under the Domestic Debt Exchange Programme (DDEP), Finance Minister Dr. Cassiel Ato Forson has confirmed.

Speaking on the matter, Dr. Forson made it clear that the state will not provide restitution to investors who took haircuts on their bonds as part of the debt restructuring exercise. The DDEP, implemented under the previous administration as part of Ghana’s broader debt sustainability strategy, required bondholders to accept reduced principal amounts, lower interest rates, and extended maturities.

The Finance Minister’s statement effectively closes the door on growing calls from some affected investor groups and financial analysts who had urged the government to consider compensation mechanisms to ease the financial pain inflicted on individual bondholders and institutional investors.

Government sources indicate that the decision is final and non-negotiable, as any compensation would undermine the fiscal consolidation gains achieved through the programme and impose an unsustainable burden on the state’s finances.

The announcement is likely to renew debate about the fairness of the DDEP, particularly regarding the treatment of small-scale bondholders who were compelled to participate in the restructuring.

Critics argue that the lack of compensation erodes investor confidence, while government maintains that the programme was necessary to restore macroeconomic stability and that all stakeholders must share in the nation’s recovery efforts.