Executive Director of Policy Initiative for Economic Development (PIED), Dr Daniel Amartey Anim, has disclosed that he perceives the individual bondholders embroiled in the debt exchange programme will be aggressive in their posture during a meeting with the finance ministry.

According to him, the finance ministry in its engagement with the bondholders must minimize technicalities, exhibit empathy in discussion and be flexible in its approach to negotiating with the bondholders. He indicated that the ministry must also communicate efficiently and effectively in a manner that will appeal to the conscience of the bondholders.

“I perceive the bondholders to put up a very aggressive posture, but the onus lies on the finance minister to be flexible in that respect. So, largely, the onus lies on the finance ministry. The team that will be meeting them, they need to be decorous [and]courteous with their language…”
Dr Daniel Amartey Anim

Dr Anim iterated that the finance ministry must show concern to the demands of the bondholders. He explained that once the bondholders align with them, then the ministry can “springboard” to negotiate the terms and manner both parties can have a win-win situation.

“I’m largely of the view that the finance ministry has a huge responsibility in creating the environment for a fruitful discussion in this particular respect.”
Dr Daniel Amartey Anim

Dr Anim noted that the meeting between the two parties will make a difference and bring clarity on the matter. This, he explained, is because the finance ministry failed to engage stakeholders holistically in the past.

The PIED executive director highlighted that the finance ministry has an opportunity to apologize to bondholders and emphasize on the demands posed by the economic pressures as reasons for its seeming indifference to their plight.

“So, once they level that particular ground, they will give them a listening ear even though they might have heard it on a number of platforms. Once they have listened to them, they will also tell them the side of government and they walk them through the path so at the end of the day they get to an equilibrium ground that will ensure that they come up with a very amicable settlement. So, it is an opportunity for the finance ministry not to assume the [bondholders] might have heard their posture and position but to just tell them their reason for [their decision].”
Dr Daniel Amartey Anim

Legislator suggests setup of bondholders committee

Meanwhile, ranking member of the finance committee in parliament, Dr Cassiel Atto Forson, has urged the NPP government to urgently constitute domestic bondholders’ committee made up of all stakeholders. He indicated that the move will help both parties resolve their difference on the debt program.

“I am of the conviction this will help resolve the stalemate and the wholesale rejection of the domestic debt exchange program. I am ready to help my country if called upon!”
Dr Cassiel Atto Forson

The Ghana Individual Bondholders Forum has been invited to a meeting with Finance Minister, Ken Ofori-Atta today, January 18, 2023. This follows a petition to the Minister for members to be excluded from the government’s domestic debt exchange programme.

Among other things, the forum which consists of persons holding investments in the Government of Ghana’s Local Cedi Bonds, Government of Ghana’s Local USD Bonds, ESLA PLC Bonds, Daakye Bonds, Ghana Eurobonds, and others say the announcement of the programme has been extremely unsettling and catastrophic for its members and others affected.

The group argues that the programme is one of the harshest debt restructuring measures ever adopted and when allowed to be rolled out, will impoverish its members.

Prior to this, the Pensioner Bondholders Forum threatened to picket at the Ministry of Finance on January 23, 2023, if government fails to exempt them from the Domestic Debt Exchange Programme.