The Government of Ghana and the Ghana Insurers Association have reached an agreement on the participation of insurance coverage corporations within the Domestic Debt Exchange (DDE) programme.
Under the agreement, insurance coverage corporations will take part within the change on related phrases because the banks, a joint assertion issued by the Ministry of Finance and the Insurers Association stated on Thursday, January 26.
“The authorities by means of the solvency window of the Ghana Financial Stability Fund (GFSF) will present help for the insurance coverage corporations which can be significantly affected by the DDEP.’
“The objective is to protect jobs and the stability of the Industry,” the assertion stated.
Government reaches agreement with Ghana Insurers Association on the Domestic Debt Exchange Programme pic.twitter.com/RpDDc1WFAT
— Ministry of Finance, Ghana (@MoF_Ghana) January 26, 2023
Last week, the Government and the Ghana Association of Bankers (GAB) additionally reached an agreement on the brand new phrases for the Domestic Debt Exchange programme.
Earlier, the banks rejected the programme as introduced by the federal government.
The GAB directed industrial banks to not signal onto the amended debt change supply over uncertainty surrounding the impression of the debt restructuring on the banking business.
The affiliation needs its issues addressed earlier than accepting the debt change supply, based on a letter despatched to managing administrators of banks and seen by 3Business. GAB advised member banks that will wish to contemplate the debt change in its present kind to formally inform the affiliation first earlier than doing so.
“…From the uncertainty surrounding the programme, GAB recommends that all banks must stay any further movement on the exchange until our demands have been met. However, in the event that a bank may have to move forward to exchange, the MD/CEO must inform the CEO of GAB directly of the decision,” based on the letter despatched to the banks.”
However, after an engagement with the Ministry of Finance, the Association of Banks that per the brand new phrases, the participation of member banks is subjected to particular person financial institution’s inside governance and approval processes.
“This is a major milestone in direction of addressing our financial challenges, and will thus assist to revive macro-financial stability and speed up Ghana’s financial development.
“With this achievement, the Government of Ghana reiterates its commitment to concluding the DDEP in time with all other stakeholders,” a joint assertion from the Finance Ministry and GAB famous.
By Laud Nartey|3news.com|Ghana
Source: 3news.com
