Vice President of Imani Africa Bright Simons has said that Ghanaian unions are under massive pressure to agree to a restructuring of pension fund-owned government bonds.
“The question is: would they be able to carry their members along? Will they ballot their members? Or will they cut a quiet deal with the govt? Analysts are observing keenly,” he tweeted.
Ghanaian unions are under massive pressure to agree to a restructuring of pension fund-owned govt bonds. The question is: would they be able to carry their members along? Will they ballot their members? Or will they cut a quite deal with the govt? Analysts are observing keenly.
— Bright Simons (@BBSimons) June 1, 2023
Organised Labour has served notice it would consider the “more superior” Domestic Debt Exchange Programme proposed by government on Thursday, June 1.
Spokesperson of Organised Labour Dr Anthony Yaw Baah said the new offer presented seems “very clear” though they will need more information to take a decision on it.
This followed a presentation made to Labour by government led by the Ministry of Finance, represented by the Minister of State, Dr Mohammed Amin Adam, and in the presence of the Minister of Employment and Labour Relations, Ignatius Baffour Awuah.
Speaking to Media General‘s Daniel Opoku after the presentation on Thursday, June 1, Dr Yaw Baah, who is also the Secretary General of the Ghana Trades Union Congress (TUC), insisted the session, though cordial, had very technical details to be further looked into by Labour’s team of experts.
“They are trying to present something which is superior to what we rejected and it has very very technical details that I cannot explain,” he admitted.
“That is why we have put together our technical team to look at it for us.”
He said the government explained that the previous one which was rejected by Organised Labour has been reviewed and the acceptance of the new one with new offers for principals and interests would enable the country return to the bond market.
“We thanked them and we assured them that we will consider the offer, so we are working on it but we need further information and that further information has to do with ‘Exchange Memorandum’ which was not presented.”
He said the new offer is more understandable but “for now the decision has not been made whether we are going to encourage our pension funds to be part in the new deal or take the offer or not”.
“We need more information about it.”
On Thursday, April 20, Organised Labour met on the new offer after reports circulated that the Ministry of Finance had written to the Board of Trustees of Pension Funds for participation in the new debt restructuring programme.
Then, it was said to be one of the conditionalities of the International Monetary Fund (IMF) programme.
With the programme sealed, government is expected to roll out measures to restore confidence into the economy.