- DDEP has introduced significant changes to government bonds
- Ashiagbor cited examples from other jurisdictions
- He urged investors to adapt
Vish Ashiagbor, Country Senior Partner at PwC Ghana, has shared his insights on the implications of Ghana’s Debt Restructuring Programme.
The programme, aimed at ensuring fiscal sustainability, has altered the economic landscape and challenged traditional assumptions about government bonds.
Ashiagbor noted that government bonds were previously considered low-risk, backed by the sovereign guarantee. However, recent developments have changed this perception.
The Domestic Debt Exchange Programme (DDEP) has introduced significant changes to government bonds, affecting investors’ expected returns and timelines.
Ashiagbor observed that financial institutions, pension funds, and individual investors are now exercising caution when investing in government bonds.
The heightened risk associated with government bonds requires a reassessment of investment strategies, considering risk appetite.
Ashiagbor cited examples from other jurisdictions, such as South America and Greece, to illustrate that even governments can struggle with unsustainable debt levels.
He emphasized that investors must adapt to this new reality and consider the risks associated with government instruments.
