The University Teachers Association of Ghana (UTAG) has reiterated its resolve to reject the debt exchange programme announced by government.

According to the association, government must listen to concerns raised by various stakeholders including the Ghana Medical Association (GMA), the Ghana National Union of Traders Association (GUTA), the Trades Union Congress (TUC) who have all rejected the programme that was launched by the Finance Minister, Ken Ofori-Atta, on Monday, December 6, 2022.

UTAG revealed that it expects government to take serious exception to any intervention that would worsen the plight of the already impoverished University Lecturers.

“We, therefore, reiterate our vehement opposition to any straight-jacket implementation of the announced debt exchange programme. It should not, in any way, affect the pensions and other investment returns of the hardworking Ghanaian.”
UTAG

In particular, the group rejected the “wholesale implementation of the recently announced debt exchange programme”.

UTAG expressed its conviction that the debt exchange programme may negatively affect the Ghana Universities Salary Superannuation Scheme (GUSSS) as well as Tiers Two and Three Pension Funds of its members.

“It would also result in significant reduction in the principal and/or interest payments due members who have invested in mutual funds and may need resources to meet emergency needs.”
UTAG

UTAG pressures government to rescind its decision

Also, the association indicated that given that the individual savings of many of its members are lodged with the various Credit Unions on campuses, part of which have been invested in bonds, any attempt at wholesale implementation of the announced debt exchange programme would ultimately harm the savings of its members.

“Government should consider the genuine concerns raised by various stakeholders and rethink the debt exchange programme. UTAG is willing to brainstorm and support Government to find lasting solutions to address the current economic challenges.”
UTAG

It will be recalled that the Minister of Finance, Ken Ofori-Atta, launched the Debt Exchange Programme as part of efforts to save the ailing economy.

Ofori Atta 3 — Minister of Finance, Ken Ofori-Atta

Under the Programme, domestic bondholders will be asked to exchange their instruments for new ones. Government’s proposed debt exchange programme is facing stiff opposition.

Organized labour and the Minority in Parliament have raised concerns about government’s failure to engage before launching the programme.

While the labour unions say the arrangement will gravely affect them, given its potential negative impact on workers’ pensions, the Minority caucus cited financial dishonesty on the part of President Akufo-Addo and his Finance Minister.

The Minority noted that the move would bring more frustration on investors and deprive them of their returns on investment.

Despite the resistance by various groups, deputy Finance Minister, Dr John Kumah, has entreated bondholders to comply with the government’s debt exchange programme to avoid losing their funds.

Dr. Kumah stated that institutional bondholders who reject the programme would have themselves to blame because they may not benefit from provisions made by the government to cushion affected people.

He emphasized that government will continue to engage the stakeholders for them to be rest assured that they stand to gain better together than to fight over this matter.