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Domestic Debt Exchange: Potential financial sector impacts and mitigating safeguards
• Ernest Addison, Governor of Bank of Ghana
A. Background
ON December 5, 2022, the Government of Ghana launched Ghana’s Domestic Debt Exchange programme, an invitation for the voluntary exchange of approximately GHS137 billion of the domestic notes and bonds of the Republic, including E.S.L.A. and Daakye bonds, for a package of New Bonds to be issued by the Republic.
The Exchange excludes Treasury Bills in totality, and notes and bonds held by individuals (natural persons).
B. Potential Impacts on Debt Exchange on Financial Sector
Stress tests have been conducted by the relevant financial sector regulators to estimate the potential impact of the Debt Exchange for banks, specialised deposit-taking institutions (SDIs), insurance firms, asset managers, collective investment schemes, pension fund trustees, and regulated pension schemes, that could result from their participation in the debt exchange.
C. Regulatory Tools to Mitigate Financial Stability Risks from the Debt Operation
To help manage the potential impacts of the Debt Exchange on the financial sector, financial sector regulators will deploy all regulatory and supervisory tools to mitigate risks to financial stability. Regulators will assess impacts on a regular basis, and quickly address evolving risks in order to safeguard financial stability.
To support and encourage full participation of financial institutions in the voluntary debt exchange:
Regulatory Forbearance on Liquidity and Solvency
Financial sector regulators will temporarily reduce regulatory capital and liquidity requirements for regulated firms and schemes that voluntarily participate in the debt operation. Regulators will also suspend or delay any new rules that will have an adverse impact on liquidity or solvency. Each regulator will communicate more specific reliefs to its regulated firms/schemes in due course.
Ghana Financial Stability Fund (GFSF)
The GFSF is being established with a target size of GHC 15 billion to be provided by the Government of Ghana and its development partners.
The Fund will provide liquidity to financial institutions that participate fully in the Debt Exchange. All financial institutions (banks, SDIs, pension schemes, collective investment schemes, fund managers, broker/ dealers and insurance firms) that fully participate in the Debt Exchange can access the GFSF for augmented liquidity support, with effect from the date of completion of the Debt Exchange.
The Fund will be managed by the Bank of Ghana under unique operational guidelines being developed by the Financial Stability Council.
The Financial Stability Council will provide ongoing advice and oversight for the use of the GFSF.
Accounting Treatment
Regulators are already in discussions with external auditors of financial institutions and will provide guidance to ensure a standardized approach to the accounting treatment applied to the Debt Exchange.
D. Conclusion
In keeping with its mandate, the Financial Stability Council will continue to closely monitor the impacts of the Debt Exchange on financial institutions and on the financial system as a whole, as well as the effectiveness of the measures outlined above. These measures will be reviewed continuously and recalibrated as needed to ensure maximum effectiveness to safeguard the stability of our financial system and the protection of deposits, pensions, policy holders’ funds, and investor funds/assets.
The information above was issued by the Financial Stability Council on Wednesday, December 7, 2022. The Financial Stability Council was established in December 2018 by Executive Instrument, to “identify and evaluate the threats, vulnerabilities, and risks to the stability of the financial sector”.
The Council is chaired by the Governor of the Bank of Ghana, and has members from the Bank of Ghana (Deputy Governor), Ministry of Finance (Deputy Minister), Securities and Exchange Commission (Director General), National Insurance Commission (Commissioner), National Pensions Regulatory Authority (Chief Executive Officer), and Ghana Deposit Protection Corporation (Chief Executive Officer).
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Health Minister leads delegation Mimi Darko’s appointment as AMA Director General
Kwabena Mintah Akandoh, Minister for Health and Member of Parliament has led a delegation to secure the appointment of Dr Delese Mimi Darko, Chief Executive Officer of the Food and Drugs Authority, as the Director General of the African Medicines Agency (AMA) during the ongoing 2nd Ordinary Session of the Conference of State Parties in Kigali, Rwanda.
This prestigious appointment, achieved through a competitive process, marks a proud and historic moment for Ghana and the entire continent.
It highlights Dr. Darko’s exceptional leadership, professionalism, and unwavering commitment to enhancing public health and regulatory systems across Africa.
The Minister expressed his deep appreciation to President John Dramani Mahama for his strong support and leadership throughout this process.
Mr.Akandoh congratulated Dr. Mimi Darko and Team Ghana for their incredibly successful campaign.
The AMA was established by the African Union on November 5, 2021, with the primary objective of improving access to quality, safe, and effective medical products throughout the continent. Its creation aims to facilitate the regulation and oversight of essential medicines at a continental level while promoting collaboration among African countries and regions.
The Agency’s mission is to provide leadership in creating an enabling regulatory environment for the pharmaceutical sector in Africa, ensuring that the African population has access to essential medical products and technologies.
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Police arrest five suspects involved in robbery cases in Ashanti Region
The Police Intelligence Directorate (PID) in the Ashanti Region has informed the public about a recent breakthrough in the fight against armed robbery in the Denchemuoso District.
Following a series of robbery incidents in the area, on April 22, 2025, PID/Ashanti operatives, acting on credible intelligence, apprehended one Michael Owusu Ansah, alias Baby Last, aged 32.
The suspect had been on the police wanted list since 2016 in connection with a robbery and the murder of Police Officer G/Cpl Frank Essel of SWAT/Ashanti, which occurred at the Open Space Hotel in Denchemuoso on May 19, 2016.
During interrogation, the suspect confessed to engaging in multiple street and residential robberies in Denchemuoso, Atwima-Techiman, Asuoyeboah, and surrounding areas.
He also disclosed that his gang operated with knives, pistols, and pump-action guns.
Further investigations led to the identification and arrest of his accomplices, namely:Emmanuel Owusu, alias Cassidy, Maxwell Gyimah, alias Nana Kwame, Sudais Oxford Ntiamoah, alias The Man Sudais and Rhano Okyere, alias Demon
These individuals were arrested from their hideouts within Atwima-Techiman and Denchemuoso.
However, one suspect, remains at large and efforts are underway to apprehend him and recover the weapons used in the robberies.
All five arrested suspects were arraigned before the Atasomanso Circuit Court on May 13, 2025.
They were remanded into police custody and are scheduled to reappear on June 4, 2025.
