In a joint press release, the Individual Bondholders Forum (IBF) of Ghana and the Individual Bond Holders Association of Ghana, confirmed the payments of matured coupons to their members.
Government has commenced payments of outstanding coupons to individual bondholders who failed to participate in the Domestic Debt Exchange programme, whose bonds matured on February 6, 2023 and February 13, 2023.
The payments which have been delayed by the Ministry of Finance received a lot of lashes from the coalition of bondholders.
The coalition of bondholders did not only express great dissatisfaction and disappointment in the Ministry’s delayed payments but even more, about its untimely communications, following the expiration of the maturities of their securities.
Recalling some concerns raised by conveners of the group, Dr. Adu Anane Antwi, Immediate-Past SEC boss and Convener of IBF did not understand why the Ministry failed to issue a statement before the expiration of the payment date of its coupons but rather chose to do that after complaints started mounting up. These were his comments:
“…If you are not able to pay, what the issuer should have done was to make a statement before the expirations of the payment date and not after.”Dr. Antwi
On his part, Martin Kpebu, Lawyer and Convener of the Bond holders, also attributed the delayed response to the Forum to the Finance Minister and the President, describing their actions as a disrespect to the Bondholders Forum. He added that courtesy would have demanded that the Ministry gave an earlier notice of not being able to execute payment on the stipulated date.
“So you see the extent to which Mr. Ofori-Atta and the President disrespect bond holders? …That is one thing that has been recurring over and over – Mr. Ofori-Atta’s incompetence…”Martin Kpebu
It is therefore on the back of this that the forum called on the Ministry of Finance to review its communication management and reposition it for proactive engagement with creditors as is professionally expected.
“While we welcome the commencement of payments, it is important to note that the failure to be definite about a payment schedule or a notification date for outstanding payments does not augur well for the rebuilding of confidence in the financial market.
“We, therefore, call on the Ministry of Finance to advise its exact payment plans within a week of this first payment. We owe it to the credibility of Ghana’s financial market and future generations to rebuild and sustain a credible and buoyant financial market, at least, in respect of information and transparency as required of issuers per the Securities Industry Act, 2016 (Act 929), SEC and GSE Regulations.”Coalition of Bond Holders in Ghana
Bondholders call on SEC, GSE to rise above partisan politics
The coalition of bond holders called on the Securities and Exchange Commission (SEC) and the Ghana Stock Exchange (GSE) to rise above partisan politics and exercise their roles responsibly as independent regulators and managers of Ghana’s securities market and build credible institutions aimed at developing the country.
“In this regard, we expect professional leadership from these two institutions in protecting investors and ensuring responsible and compliant conduct of issuers, including the Government of Ghana and the Ministry of Finance.
“We humbly urge the Ministry of Finance to review its communication management and reposition it for proactive engagement with creditors as is professionally expected. We remain committed to cooperating with the Ministry of Finance to address challenges as they may emerge and to rebuild confidence in Ghana’s financial market.”Coalition of Bond Holders in Ghana
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