Debt Exchange: Review decision on individual bondholders; it’s unfair to them – Annoh-Dompreh tells Ofori-Atta

New Patriotic Party (NPP) Member of parliament for Nsawam Adoagyiri, Frank Annoh-Dompreh has asked the Finance Minister Ken Ofori-Atta to review the decision to include individual bondholders in the Domestic Debt Exchange programme.

He described the inclusion of the individual bondholders as unfair and untenable.

“The Finance Minister (Ministry) must as a matter of urgency review as soon as possible its decision and resolution on individual bond holders. I don’t agree with them and I think it’s unfair and untenable! Review your decision now,” the Majority Chief Whip tweeted.

The debt exchange programme announced by Mr Ofori-Atta has suffered rejection from Ghanaians.

For instance, Convener of the Individual Bondholders Forum (IBF) Senyo Hosi, said regarding the programme that in an unfortunate oppressive fashion, the government has shown total disregard for the contractual rights of Individual bondholders and has made no effort to structure reasonable consultations with individual bondholders.

In the process, the IBF said, Ghanaians have been presented with painfully stark, impoverishing and unsustainable choices – a situation deeply troubling and wholly untenable.

This is only possible because of the absence of effective representation and the perceived ease of oppressing a dispersed section of investors into submission,” a statement issued by Hosi said.

The Government of Ghana (GoG) announced that under its Domestic Debt Exchange (DDE) programme, individual bondholders were to submit to a “voluntary” arrangement to exchange their domestic bonds for new benchmark bonds.

This arrangement, according to IBF, irreversibly takes away the wealth and livelihoods of direct and indirect individual bondholders whose only crime has been to trust their government.

Tied to this is a mandatory deadline which compels holders to either accept the government’s offer or risk the threat of prohibitive losses, the Forum added.

It stressed “In an unfortunate oppressive fashion, government has shown total disregard for the contractual rights of Individual bondholders and has made no effort to structure reasonable consultations with individual bondholders.

“In the process, we have been presented with painfully stark, impoverishing and unsustainable choices – a situation deeply troubling and wholly untenable. This is only possible because of the absence of effective representation and the perceived ease of oppressing a dispersed section of investors into submission.”

The Individual Bondholders’ Forum (IBF) is a voluntary group of individual bondholders established with defined governance structures to coordinate and defend the interests of individual bondholders in respect of the DDE program and to engage the GoG.