Mr. Martin Kpebu, a Convener of the Individual Bondholders Forum has expressed anger and worry over the government’s delay in the payment of the matured coupons of existing bondholders.
According to him, the Finance Minister’s refusal to make payment of coupons that have matured shows that he is abusing his office.
“Today as we speak, about 4.5 billion of the bonds are due and there are individuals in it. If you think that there is any reason why segregating individuals from others will be a problem, speak to us. The Finance Minister has said nothing to us.”
Mr. Kpebu
Mr. Kpebu revealed that Hon Ofori-Atta assured that existing bonds will be honoured, therefore should communicate if there are operational challenges.
“If you think there are operational challenges or whatever, we have leadership or even if you don’t need to call leadership, make an announcement but he said nothing but they put in the info memo that the second to the bond exchange programme that they are not paying any principals and coupons due. How do you make such a huge u-turn? Why is Ofori-Atta abusing his office like that?”
Mr. Kpebu
The convener divulged that Hon. Ofori Atta “can’t behave as if the Finance Ministry is his personal property. This is governance.” Mr. Martin Kpebu, therefore asserted that, Mr. Ofori-Atta will be called out to ensure he fulfils his promise to those whose bonds have matured.
The Private legal practitioner to a greater extent expressed his disappointment in government’s hesitance to exempt individual bondholders from the Debt Exchange Programme. According to him, the debt exchange programme can be carried through without the inclusion of individual bondholders.
This, to him is indicative of President Akufo-Addo’s optimism that the proposed programme is almost completed.
Individual Bondholders Will Be Paid Upon Maturity Of Bonds
It will be recalled that Deputy Finance Minister, Hon John Kumah last week, assured that Individual bondholders will be paid their respective coupons upon maturity even if they do not sign on to the Debt Exchange Programme proposed by the Government.
According to Dr John Kumah who cautioned against the risky choice, as long as bondholders hold on to their existing bonds till maturity, they will be paid.
The Deputy Minister divulged that “Individual bondholders have been given the option; please you can stay out and keep to your old bonds. Government has promised to honour the old bonds as and when they are due”.
Dr John Kumah gave this assurance during an interview on Wednesday, February 1. He however, encouraged individual bondholders to sign onto the DDE programme so as to engender the creation of a more vibrant market.
When asked if the value of bonds not rolled onto government’s new programme are guaranteed, Hon John Kumah made known that, that may not be the case.
“This one, maybe, it is when you talk to a finance expert that they will tell you that the fact that your bond will be paid on maturity doesn’t mean that today the current value of the bond is X or Y amount.
“And this is where we thought in the end, it was advisable to rope in the individual bondholders for their own good. Because once you carve out 90% of the market and you ask me to hold on to the 10%, you have virtually reduced the value of my bond unless I hold on to maturity.”
Mr. Kumah
The Deputy Finance Minister further expressed the conviction that, the fortunes of the individual bondholders are better secured if they sign onto the government programme.
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