The Ministry of Finance (MoF) has assured the members of the Individual Bondholders Forum (IBF) of honoring their delayed payments within the 48-Hours Ultimatum posed.
This assurance follows the complaint of bondholders of not receiving their payments on Monday, 13th March, 2023 as was earlier announced by MoF.
According to a statement issued by the Ministry of Finance, in succession – Tuesday, March 14, the processes to settle the payments on outstanding bonds commenced on Monday, March 13, 2023, hence, assured bondholders to expect payment within the stipulated time given.
“The initial instruction covers coupon and principal payments on bonds that matured on 6th February, 2023 and 13th February, 2023. Holders of the afore-listed bonds should therefore expect to receive their payments within the next 48 hours.
“Payment dates for subsequent maturities will be communicated in due course, as processing continues.”
MoF
The Ministry delayed in payment of coupon and principals to bondholders over a month now, which matured on the 6th of February, 2023, and 13th February, 2023, spiking the complaints being raised.
Yesterday, Tuesday, March 14, 2023, had the Coalition of Individual Bondholder Groups issuing a 48-hour ultimatum to MoF to pay all matured principal and outstanding coupons due on the existing bonds issued by the Government of Ghana.
This comes against the expiration of the deadline given by the government to have their debt obligation honored.
Senyo Hosi, Convener of the IBF, in a statement signed with Dr. Joel Djangma Akwetey, called on the Securities and Exchange Commission and the Ghana Stock Exchange, the regulators of the financial market in Ghana, to enforce the rules of full disclosure required by all issuers including the Government of Ghana.
“We are giving a 48-hour ultimatum to the Ministry of Finance to honor its word to pay all matured principal and outstanding coupons due on the existing bonds issued by the Government of Ghana. We call on the Securities and Exchange Commission and the Ghana Stock Exchange to enforce the rules of full disclosure required by all issuers including the Government of Ghana.”
IBF
The Forum further pledged fighting to ensure the full payment of investors’ monies is effected and the preservation of the securities markets for the future generation, worked upon.
IBF questions the credibility of Ghana’s Financial Market
The coalition described as unfortunate, the disregard by the Finance Minister, Ken Ofori-Atta, of all the basic rules that have been instituted to protect the integrity of the local markets and maintain sovereign credibility for Ghana after the Ministry in February promised to pay all bondholders who opted out of the Voluntary Domestic Debt Exchange programme their coupons and principals March 13, 2023, but failed to.
“At the close of business on March 13, 2023, the Ministry of Finance, led by Ken Ofori-Atta, disregarded all the basic rules that have been established to protect the integrity of the local markets and maintain sovereign credibility for Ghana. It is most unfortunate that the Ministry continues to have absolute disregard for its creditors, in this case, individual bondholders, despite prior meetings held in which we stated the need for communication.
“The coupon and principal payments due to Individual Bondholders who opted out of the Voluntary Domestic Debt Exchange programme have not been paid, despite written press releases confirming the resumption of payments on March 13, 2023.”
IBF
The Forum also expressed worry about the loud silence of the SEC – charged with the mandate to protect investors and market integrity.
“The umbrella regulator of the Securities markets – Securities and Exchange Commission (SEC), Ghana – charged with a mandate to protect investors and market integrity have also maintained a loud silence throughout this period on the plight of Individual Bondholders. The Ghana Fixed Income Market of the Ghana Stock Exchange, where the old Government of Ghana bonds are listed and traded have also not enforced its basic rules of disclosure required by issuers; more loud silence.
“The little confidence remaining in the markets as a result of assurances from the Ministry of Finance is fading away under the full watch of the very institutions set up to protect Individual Bondholders, as was the case in the aftermath of the DDEP announcement, have been left to fight for themselves as the Government creates a full default on its obligations. Fight we will.”
Senyo Hosi
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