All over the world government bonds are considered risk free therefore, if this narrative is changing in Ghana following the inclusion of pensioners in the Domestic Debt exchange programme (DDEP), officials will have to be measured in their utterances in order not to further weaken public confidence, a former Finance Minister Seth Terkper has said.
Mr Terkper was answering a question regarding the comment of Mr Gabby Otchere-Darko who indicated that the pensioners who picketed at the Finance Ministry to protest their inclusion in the debt exchange, were asking to be exempted from an improved offer programme which is voluntary.
In a series of tweets, Mr Otchere-Darko said “As an individual bondholder myself I wish to join the others in thank ling those like Senyo Hosi, Gayheart Mensah and co, who volunteered to lead the advocacy resulting in a far better offer for individual bondholders (particularly pensioners) than the original offer. Ayekoo!
“Whiles I have sympathies for those picketing, I think we should be bold enough to ask them what really is the purpose? Why picket over an offer which you have the liberty not to accept? You are asking to be exempted but from an improved offer programme which is voluntary!
“The former Chief Justice, Sophia Akuffo, may mean well but she erred big time in her basic appreciation of the issues. Rather than asking the Govt for exemption at this late hour, why did she simply not ‘exempt’ herself from exchanging her original bond for the new one!
“Why picket over something you don’t like (the improved offer) when you have the right not to sign up? Sorry, but I struggle to get her emotional outburst over-exemption! I hope she won’t volunteer to picket tomorrow and on the same issues when the time to sign up has expired.
“I was among those who pleaded for the exemption of pensioners. But, the Govt had to balance all that with the need to protect the economy for the 33m population and settled on the 15% yield maturing in 5yrs instead of 15, and that the individual was FREE not to participate.
“For a former CJ to take up a noble cause such as she did but at such late hour when all was done and for all that publicity, she owed it to herself and her social standing to have understood the issues far better than what she exhibited last Friday. She is bigger than that.”
Speaking on the Ghana Tonight Show on TV3 Monday, February 13, Mr Seth Terkper said “i think if it was that easy we wouldn’t have all these meetings. I think it will be unfortunate because the government is reaching its goal of 80 per cent or so, I will have such a posture.
“…let us be careful that we are not making statements which will ultimately affect confidence.”
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,” a statement issued by the Ministry of Finance on Tuesday, February 14 confirmed that it has met its target.
“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