The people do not really trust the government when it comes to the Domestic Debt Exchange Programme (DDEP) hence the never-ending picketing by the pensioners against their inclusion, a Financial Analyst, Mr Joe Jackson has said.
Mr Jackson stated on the Ghana Tonight show on TV3 Wednesday, February 15 that there have been too many U-Turns by the government.
Also, he added, the government is asking the people to make sacrifices when it has not done the same by cutting expenditures.
These factors, he said, create room for mistrust.
“There is a huge trust deficit, there have been so many U-Turns, the government has not engaged enough, the government has not cut expenditure,” Mr Jackson said.
Also speaking on the same show, a Former Director General of the Securities and Exchange Commission (SEC) Dr Adu Anane Antwi who is one of the pensioners calling for their exemption from the programme said they are fighting for Issuer Exemption and not self-exempt.
He stated that the two are completely different.
“if you don’t understand the issue between self-exempt and issuer-exempt you will not understand what we are doing,” he said.
He added “Nobody fights for self exempt, we are fighting for Issuer exempt and we haven’t gotten it.
“These are technical things, not even people in securities understand unless we do the analysis. We want to be at the issuer exemption status.”
His comments come after the Finance Minister Ken Ofori-Atta told them that there was no need for them to continue picketing over their inclusion in the debt exchange.
The Minister told them that assurance has been given to address their concerns.
“Really, there is no reason for us to be sitting here because that assurance has been given on paper. I want to know what it is that you are afraid of or that you think will not happen.
” My issue is that now you have very little of the old bonds existing. This means that, in the event of a crisis, your ability to trade your papers is diminished. But that is the choice you made,” Mr Ofori-Atta told them on Wednesday.
The pensioners have been picketing at the Ministry since Monday, February 6 to be exempted from the Programme.
The government has extended the Settlement Date of the Exchange from the previously announced 14th February 2023 to 21st February in the Domestic Debt Exchange Programme (DDEP).
This is to provide sufficient time to settle the New Bonds in an efficient manner, a statement issued by the Ministry of Finance said on Tuesday February 14.
“To provide sufficient time to settle the New Bonds in an efficient manner, the Government is extending the Settlement Date of the Exchange from the previously announced 14th February 2023 to 21st February 2023”, the statement indicated.
The Ministry earlier expressed gratitude to all bondholders who voluntarily participated in the DDEP.
The Programme closed on Friday, February 10 after multiple deadlines.
The Minister of Finance, Ken Ofori-Atta, had targeted over 80 percent participation amid agitations among individual bondholders and some Senior Citizens, who sought exemption from the Programme.
“The Government’s Domestic Debt Exchange Programme (DDEP) closed on Friday 10th February 2023 with over 80% participation of eligible bonds,” opened a statement issued by the Ministry of Finance on Tuesday, February 14.
“The Government wants to thank the people of Ghana for their forbearance and support throughout these very difficult times.”
It said by the participation of the voluntary bondholders after the closure of the Programme on Friday, the country has inched closer towards securing the $3billion extended credit facility (ECF) from the International Monetary Fund (IMF).
“The DDEP is being done to help protect the economy and enhance our capacity to service our public debts effectively.
“The alternative of not executing the DDEP would have brought grave disorder in the servicing of our national debt and exacerbated the current economic crisis.
“The Government is, therefore, grateful for the overwhelming participation of all bondholders.
“Your support and contribution has gotten your country much closer to securing the IMF programme.”
It asked individual bondholders, particularly pensioners, who did not participate in the Programme, to be rest assured that their coupon payments and maturing principals will be honoured in line with laid-down rules.
By Laud Nartey|3news.com|Ghana