Dr. Adu Anane Antwi, Immediate past Director-General of The Securities and Exchange Commission (SEC) and Convener of the Pensioners Bondholders Forum has declared that, the forum will continue to press home their demand to be totally exempted from the Domestic Debt Exchange Programme (DDEP) until their request is granted.
This, Dr. Antwi remarked after members of the Forum lamented that government is indifferent towards their concerns towards being completely exempted from the programme.
The Forum will today, Monday, February 6th, 2023 meet with the Finance Ministry to conclude on the matter against the stipulated deadline for the exchange programme which is tomorrow, Tuesday, February 7th, 2023.
“We are pressing home our demand for an exemption. That is why we have decided to converge at the ministry from Monday.
“Originally, we told the police that we will be converging every working day until our demands are met but for now, we are going there for two days and then subsequently, see what to do; whether to continue or not depending on the response we get from government.”
Dr. Antwi
The pensioners have complained about how adversely the programme was going to affect their livelihoods, considering the fact that a larger proportion of the group is made up of the aged, especially, with the associated terms and conditions of the programme.
Based on these complaints and concerns, Convener of the group, Dr. Antwi said they will continue to debate their exclusion until the finance ministry today, during their meeting accepts their demands.
“On 10 January 2023, we submitted a petition to the Minister of Finance to exempt all pensioners holding Government Bonds from the Domestic Debt Exchange Programme on the same basis used for the exemption of Pension Funds from the programme, as the impact of the programme on pensioners who are bondholders will be very severe.
“We have, as of today not been granted the exemption we requested. To further press home our request, we have notified the police that about 50 of our members intend to converge at the premises of the Ministry of Finance on every working day from 10 am-11 am, beginning from Monday 6th February 2023 till our request is granted by the Minister.”
Pensioners Bondholders Forum
Consequently, this has warranted the decision of the group to continuously visit the Finance Ministry to further push their concerns through.
Meanwhile, President Nana Addo Dankwa Akufo-Addo noted that despite the initial opposition to the DDEP by some stakeholders, government is gradually receiving cooperation.
The President reiterated that the successful implementation of the programme will grant Ghana access to its bailout loan from the International Monetary Fund (IMF) by March 2023.
“One of the steps in the domestic debt exchange is, unfortunately, facing some difficulties, so it has not been concluded. As quickly as possible we are looking at the committee to ensure that all the stakeholders are well engaged.”
Akuffo-Addo
The President passed this comments during Christian Lindner, German Finance Minister’s visit to the country.
DDEP: Government’s further extension, to conclude on its new terms with stakeholders
The government, for the fourth time extended the deadline for the Programme from January 31st, 2023 to February 7, 2023, introducing new terms, in its quest to further engage with stakeholders, especially individual bondholders.
The new terms of the DDEP has it that, all individual bondholders below age 59 be offered instruments with a maximum maturity of five years, instead of the usual 15 years, and a 10% coupon rate; while retirees, including those retiring in 2023, also offered instruments with same maturity period, however, at a coupon rate of 15%.
The expectation of the government is that 80% subscriptions are received for the programme as its aim by 2028 is to achieve 55% debt-to-GDP ratio, which is another condition to secure it a $3 billion bailout from IMF.
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