Ghanaian Individual bondholders have intensified their opposition to government’s Domestic Debt Exchange Programme (DDEP) as they have by close of day today to sign up to the programme.
Most of these bondholders have refused to budge to the new direction as a result of the probable risk of losing out on their investments.
Government earlier warned that their investments will be worth nothing if they fail to sign up even though the deal has been described as voluntary.
The aim of the DDEP is to make the nation’s debt sustainable as it is a key component to securing an International Monetary Fund (IMF) bailout.
Bondholders however strongly oppose this new development as according to them, the deal is not favorable.
No matter how much money you make, financial advisors will advise you to put some of your money away against a rainy day, the bondholders said.
The financial advisors also advise investing your funds rather than saving and keeping them idle in the bank accounts.
To become financially free, they preach that “invest in treasury bills, bond and properties” and that is what most of the individual bondholders have done.
After saving and opting for voluntary retirement from her company after 18 years of working, an individual bondholder reports of putting her savings into government sovereign bonds.
“I could have put it in savings but the interest on the savings is nothing to write home about and have rather moved to the government product.”
Roberta, One of the distressed bondholders
Doing this however seems to have been a wrong idea as she complains of having sleepless nights.
“It can’t be true. We are still in that land that it cannot be true. Then, how do we survive.”
Roberta
Today, January 16, 2023 is the deadline for bondholders to sign up for this exchange.
With the future uncertain, many of these individual bondholders are uncertain. Most of these bondholders are still brooding over how to recoup their investments and never ever think of investing again in government bonds as this one to them, has been a ‘bond of sorrows’.
Bondholders Call for a deadline extension
Professor Godfred Bopkin, an economist and professor in Finance at the University of Ghana Business School has called on government to extend the deadline and review the terms and conditions of the DDEP.
“What I’m hoping is that by mid-day tomorrow (speaking of today, January 16, 2023), government will say that I have listened guys, we have extended the deadline. Let’s engage. Let’s build consensus. That is what I’m expecting.”
Prof. Bopkin
Meanwhile, some individual bondholders have expressed their willingness to engage should the government call the deadline off to negotiate.
“We are reasonable people. You’ve cut taxes but still no one has complained. We already have something called social family cuts – your salary, taxes, additional taxes…then you have your family members who have lost their jobs, you have to send them MoMo…”
Senyo Kwasi Hosi, CEO of the Ghana Chamber of Bulk Oil Distributors, a Finance and Economic Policy Analyst
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