Stakeholders in Ghana have taken a massive step by rejecting the Debt Exchange Programme as announced by the Finance Minister, Ken Ofori-Atta for President Nana Addo Dankwa Akufo-Addo’s government.
According to the Finance Minister, the programme is meant to assist the country in restructuring its debt using levels which are sustainable.
“Under the Programme, domestic bondholders will be asked to exchange their instruments for new ones. Existing domestic bonds as of 1st December 2022 will be exchanged for a set of four new bonds maturing in 2027, 2029, 2032 and 2037.”
In addition, “The annual coupon on all of these new bonds will be set at 0% in 2023, 5% in 2024 and 10% from 2025 until maturity. Coupon payments will be semi-annual.”
In the Minister’s announcement, he also said “exchange domestic bonds as at December 1, 2022 for 4 new bonds maturing in 2027, 2029, 2032 and 2037. These new bonds will pay no interest in 2023, 5% interest in 2024, and 10% interest per annum until maturity. Treasury bills are exempt from this debt exchange programme. So are individual bondholders.”
Against the above announcements, twelve (12) Stakeholders have rejected the Debt Exchange Programme (DEP).
LIST OF STAKEHOLDERS WHO REJECTED THE DEBT EXCHANGE PROGRAMME
- Minority MPs
- Trades Union Congress (TUC)
- Health Service Workers’ Union
- Ghana Medical Association (GMA)
- Ghana Registered Nurses and Midwives Association
- Ghana National Association of Teachers (GNAT)
- National Association of Graduate Teachers (NAGRAT)
- University Teachers Association of Ghana (UTAG)
- Pharmaceutical Society of Ghana
- Chamber of Corporate Trustees
- Financial Stability Council
- Ghana Mines Workers Union