Members of the Individual Bondholders Forum (IBF) have urged direct and Indirect bondholders to reject and refrain from the domestic debt exchange program (DDEP).
Pending further consultations and engagements including the pursuit of legal actions where necessary, IBF in its press release on the 11th January, 2023, has cautioned all direct and indirect bondholders to ignore the mandatory deadline imposed under the government intended Debt Exchange Program.
Members of IBF are voluntary group of individual bondholders established with defined structures to coordinate and defend the interest of individual bondholders in respect to the debt exchange program, and as well engage the Government of Ghana.
According to IBF, Government’s announcement concerning individual bondholders under the DDEP to submit to a “voluntary” arrangement to exchange their domestic bonds for new benchmark bonds is a disappointment to the people for putting their trust in the government.
“This arrangement irreversibly takes away the wealth and livelihoods of direct and indirect individual bondholders whose only crime has been to trust their government. Tied to this is a mandatory deadline which compels holders to either accept the government’s offer or risk the threat of prohibitive losses.”
Members of the Individual Bondholders Forum (IBF)
IBF stressing on their displeasure with government’s initiative mentioned that, in an unfortunate oppressive fashion, government has shown a total disregard for the contractual rights of individual bondholders and has made no effort to structure reasonable consultations with the individual bondholders.
“In the process, we have been presented with painfully stark, impoverishing and unsustainable choices – a situation deeply troubling and wholly untenable. This is only possible because of the absence of effective representation and the perceived ease of oppressing a dispersed section of investors into submission.”
Members of the Individual Bondholders Forum (IBF)
Gov’t Should Create Room For A Dialogue With IBF – Senyo Hosi
In a statement signed by Senyo Hosi, the immediate past Chief Executive of the Chamber of Bulk Oil Distribution Companies, he urged indirect bondholders (investors in mutual funds, cash trusts, balance funds) to inform their fund managers not to accept the DDEP.
According to him, government needs to open a channel of communication for immediate frank, transparent and sincere dialogue on the DDEP with the IBF, and with the view to seeking an effective resolution to the developing impasse and the fast-depleting confidence in the Ghanaian economy.
The members of IBF, who provides legal, public advocacy and negotiation representation for members with investment in; Government of Ghana Local Cedi Bonds, Government of Ghana Local US Dollar Bonds, ESLA Bonds, Daakye Bonds, Ghana Eurobonds and Collective Investment Schemes, have urged fund managers to totally close their eyes on government’s DDEP.
“The medium- to long-term prospect and outlook of the domestic investment culture in Ghana is going to be affected by this DDEP initiative and we call on government to demonstrate the needed sensitivity to enable a constructive resolution in the best interest of all. If not, we entreat fund managers to abstain from DDEP.”
Members of the Individual Bondholders Forum (IBF)
IBF as well called on labour unions to join them in the fight for the preservation of hard-earned savings invested by the Ghanaian public which also includes their members. “We also look forward to partnering likeminded groups and organizations to achieve our joint goals,” they indicated.
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