Annoh-Dompreh Advises Gov’t Over Individual Bondholders Capture In Debt Restructuring

by Isaac Mintah
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Majority Chief Whip, who doubles as Member of Parliament for Nsawam-Adoagyiri in the Eastern Region, Hon Frank Annoh-Dompreh has called on the Ministry of Finance to revisit its decision and resolution on Individual Bond Holders as a matter of urgency.

He totally disagrees with the government’s decision. Annoh Dompreh believes it is unfair and untenable.

Ghanaians could recall that government modified its GH¢137.3 billion domestic bond exchange programme to include individuals, as part of efforts to restructure the country’s debt.

This was to get some favour from the Management and Executive Board of the International Monetary Fund (IMF) for a $3 billion loan-support programme, to address the country’s economic constraints.

Few days after the government announced the exclusion of pension funds in the debt restructuring programme, it decided to include individual bondholders.

That meant that individual investors were initially not part of the domestic debt restructuring.

The Majority Chief Whip took to his Twitter handle to advice the Minister for Finance, Mr Ken Ofori-Atta with a matter of urgency to review it.

A release issued by the Finance Ministry had earlier stated that in addition to foregoing extensions, the government was, “Expanding the type of investors that can participate in the Exchange to now include Individual Investors.”

The release explained, “Offering accrued and unpaid interest on Eligible Bonds, and a cash tender fee payment to holders of Eligible Bonds maturing in 2023.”

It churned eight other new instruments to the composition of the new bonds, for a total of 12 new bonds, one maturing each year, which took effect January 2027 and expected to end January 2038.

The government further extended the deadline for the voluntary participation in the debt exchange programme to January 16, 2023, from the previous December 30.

There was a statement from the Finance Ministry indicating an amendment to the terms of the domestic exchange programme that was announced after the individual investors were included.

Individual bondholders now have until January 16 to sign up for the debt exchange programme or be in default.

This magazine has gathered there are some three groups representing individual bondholders who have commenced movee to file legal suits against the government for including individual bondholders in the Debt Restructuring Programme.

The Finance Ministry had cautioned individual holders of eligible bonds who refuse to take the Amended and Restated Exchange Memorandum under the Debt Exchange Programme provided by the State that they will find it difficult to obtain a judgment against the Government of Ghana.

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