• About
  • Advertise
  • Privacy Policy
  • Contact
Thursday, June 26, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Pensioners At Risk As Government Plans to Restructure GHS31 billion Pension Funds

August 1, 2023
Stephen M.Cby Stephen M.C
in Pension
0
Fresh Debt Exchange Looms As Gov’t Invites ESLA, Daakye Bondholders

Ken Ofori-Atta, Finance Minister of Ghana

The government through the Finance Ministry has invited Pension Funds to exchange GHS31 billions of old bonds for new ones as part of efforts to complete domestic debt restructuring under the ongoing International Monetary Fund (IMF) bailout programme.

According to a statement issued by the Finance Ministry, the holders will exchange outstanding bonds issued in February 2023 for new ones maturing in 2027 and 2028.

“This Invitation is intended to enable the Pension Funds to preserve their patrimonial value, while exchanging their Eligible Bonds for Bonds that offer more potential liquidity,” the Ministry said in the statement.

RelatedPosts

Ato Forson Cautions SSNIT Board Against Political Asset Sales at Inauguration

GAB CEO Calls for Rethink in Pension Investment Strategy

African Centre for Retirement Research Calls on SSNIT Leadership to Cut Costs and Improve Pension Management

The statement indicated that eligible holders tendering their eligible bonds pursuant to the invitation would receive Exchange Bonds of the Government on the terms and subject to the conditions described in the Exchange Memorandum.

 “In 2023 and 2024, both instruments will pay 5 per cent coupon in cash, and the remainder will be capitalised into the nominal amount of the two bonds to comply with the cash constraints and the macro-framework defined under the programme agreed between the government and the IMF,” the statement said.

The finance ministry stated that the alternative offer has been designed to achieve the same average maturity as pension funds current holdings of old bonds, currently between 4 and 5 years, achieve a better average coupon (currently at 18.5 per cent while alleviating the cash constraint for the government during the initial years after the exchange.

The Offer Preserves the Net Present Value of Pension Funds

Overall, it explained that the offer preserves the net present value of pension funds current holding of old bonds at a 21 per cent discount factor, the Minister said in a letter accompanying the Memorandum of Exchange.

“All offers to exchange eligible bonds made by eligible holders are irrevocable subject to withdrawal rights under certain limited circumstances,” the statement said.

The submission of offers commenced from now and would end August 18, 2023, but subject to extension, the statement indicated.

“By tendering their Eligible Bonds, Eligible Holders represent and warrant that such Eligible Bonds constitute all the Eligible Bonds owned by them and consent to the blocking by the Central Securities Depository (CSD) of any attempt to transfer them prior to the Settlement Date (as defined below) or the termination of the Invitation by the Republic,” it stated.

The government indicated that on August 25, 2023 (the settlement date), it would issue the new bonds to eligible holders whose offers were accepted for credit to the account of such eligible holder at Ghana’s CSD.

The government added that it reserves the right to extend the settlement date (including with respect to one or more series of Eligible Bonds) without offering Eligible Holders the right to withdraw their Offers.

That would occur, provided that such extended Settlement Date was not later than August 28, 2023 – the longstop date. “The Government may extend the settlement date beyond such longstop date and designate a new longstop date,” the statement noted.

However, such extension would be subject to the granting of withdrawal rights to eligible holders who submitted offers before such extension, subject to the conditions described in the Exchange Memorandum.

READ ALSO: A Promising Start to the New Week As GGBL Elevates the Composite Index

Tags: Central Securities Depository (CSD)Government Plans to Restructure GHS31 billion Pension FundsInternational Monetary Fund (IMF)Net Present ValuePension fundsPensioners At Risk
Please login to join discussion
Previous Post

CETAG Expresses Readiness To Engage NLC Over Conditions Of Service

Next Post

There’s Been No Holiday Here- Swedish Prime Minister

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.

Related Posts

Rally legend Carlos Sainz
Sports

Carlos Sainz Rules Out FIA’s Presidency Bid

June 26, 2025
National Chairman of the ruling National Democratic Congress (NDC), Hon. Johnson Asiedu Nketiah
General News

NDC Chairman Pushes for Complete Overhaul of EC Leadership

June 26, 2025
HE President John Dramani Mahama
General News

President Mahama Makes Powerful Call for Vaccine Equity

June 26, 2025
Broadcaster Slams Ghanaian Celebrities’ Election-Season Activism
Entertainment

Broadcaster Slams Ghanaian Celebrities’ Election-Season Activism

June 26, 2025
Johnson Asiedu Nketiah, Process, Nominees, MMDCEs
General News

NDC Boasts Over 60% Approval of MMDCE Nominees

June 26, 2025
Hon. Felix Kwakye Ofosu, Minister for Government Communications and Presidential Spokesperson
General News

Presidency Rejects Suspended CJ’s Claims of Political Motive in Removal Process

June 26, 2025
Rally legend Carlos Sainz
Sports

Carlos Sainz Rules Out FIA’s Presidency Bid

by Evans Junior OwuJune 26, 2025
National Chairman of the ruling National Democratic Congress (NDC), Hon. Johnson Asiedu Nketiah
General News

NDC Chairman Pushes for Complete Overhaul of EC Leadership

by Evans Junior OwuJune 26, 2025
HE President John Dramani Mahama
General News

President Mahama Makes Powerful Call for Vaccine Equity

by Evans Junior OwuJune 26, 2025
Broadcaster Slams Ghanaian Celebrities’ Election-Season Activism
Entertainment

Broadcaster Slams Ghanaian Celebrities’ Election-Season Activism

by Esther Korantemaa OffeiJune 26, 2025
Johnson Asiedu Nketiah, Process, Nominees, MMDCEs
General News

NDC Boasts Over 60% Approval of MMDCE Nominees

by Silas Kafui AssemJune 26, 2025
Hon. Felix Kwakye Ofosu, Minister for Government Communications and Presidential Spokesperson
General News

Presidency Rejects Suspended CJ’s Claims of Political Motive in Removal Process

by Evans Junior OwuJune 26, 2025
Rally legend Carlos Sainz
National Chairman of the ruling National Democratic Congress (NDC), Hon. Johnson Asiedu Nketiah
HE President John Dramani Mahama
Broadcaster Slams Ghanaian Celebrities’ Election-Season Activism
Johnson Asiedu Nketiah, Process, Nominees, MMDCEs
Hon. Felix Kwakye Ofosu, Minister for Government Communications and Presidential Spokesperson
[/vc_row_inner]

Recent News

  • Carlos Sainz Rules Out FIA’s Presidency Bid
  • NDC Chairman Pushes for Complete Overhaul of EC Leadership
  • President Mahama Makes Powerful Call for Vaccine Equity
  • Broadcaster Slams Ghanaian Celebrities’ Election-Season Activism
  • NDC Boasts Over 60% Approval of MMDCE Nominees
The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.