The Coalition of Individual Bondholders has given the Finance Ministry a 48-hour ultimatum to pay all matured principal and outstanding coupons due on the existing bonds issued by the Government of Ghana.
According to the coalition, the Securities and Exchange Commission and the Ghana Stock Exchange must enforce the rules of full disclosure required by all issuers including the Government of Ghana. It pledged to fight to ensure the full payment of investors’ monies and the preservation of the securities markets for the future generation.
“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.”
Coalition of Individual Bondholder Groups
Contained in a statement signed by Dr. Joel Djangma Akwetey and Senyo Hosi, the coalition explained that 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.
Describing the situation as most unfortunate, the coalition stated that the Ministry continues to have absolute disregard for its creditors, in this case individual bondholders, despite prior meetings held in which it 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.”
Coalition of Individual Bondholder Groups
Coalition express worry over reluctance of SEC to address issue
Furthermore, it expressed worry about the loud silence of the SEC – charged with the mandate to protect investors and market integrity. It stated that SEC, being the umbrella regulator of the Securities markets, has remained indifferent 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.”
Coalition of Individual Bondholder Groups
Commenting on the market confidence in the country, the coalition stated that 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. To this end, it promised to fight till payments are done.
“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”.
Coalition of Individual Bondholder Groups
The coailtion’s statement followed the expiration of the deadline by the government to honour its debt obligation.
The Finance Ministry in February promised to pay all bondholders who opted out of the Voluntary Domestic Debt Exchange programme their coupons and principals on March 13, 2023, but that has not been the case.
The Ministry had indicated that newly issued bonds that have been settled and listed will become the new benchmark bonds for the fixed-income market.
Prior to the release of the statement, a coalition of three individual bondholder groups had a meeting with Mr Ken Ofori-Atta, the Minister of Finance. The purpose of the meeting was to seek clarity on the modalities and exact dates for the settlement of bonds that were due for payment during the period of the Domestic Debt Exchange Programme (DDEP).
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