Government has announced it has completed its Domestic Debt Exchange Programme (DDEP) as it moves towards having a deal with the International Monetary Fund (IMF) for a $3 billion balance of payment support to salvage the Ghanaian economy.
Accordingly, it has given firm assurance to all Individual bondholders, especially pensioners that their coupon payments and maturing principals, like all Government bonds, will be honoured in line with its fiscal commitments.
The assurance followed closure of the Domestic Debt Exchange Program (DDEP) on Friday 10 February 2023 with over 80% participation of eligible bonds.
According to the Ministry of Finance, participation in the DDEP from the onset to its closure on Friday 10″ February 2023 was voluntary.
“Government, throughout the exercise, had always affirmed that individual Bondholders are free not to participate. Thus, the right of the individual to self-exempt was never in doubt.
“However, under the circumstances, Government at the same time, always made a strong but humble appeal to bondholders to participate in the DDEP; seeing it as a very critical act of burden-sharing in the ongoing national effort to tackle the economic crisis, bring back macroeconomic stability and guarantee sustainable growth and prosperity for the people of Ghana.
“Government in addition, offered alternatives to encourage individual bondholders and retirees to tender for the new bonds which will have wider secondary market circulation”, the Ministry of Finance indicated in a statement issued yesterday.
Government stressed that the DDEP, is being done to help protect the economy and enhance the country’s capacity to service its public debts effectively.
The alternative of not executing the DDEP, government stressed, 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 contributions have gotten your country much closer to securing the IMF programme,” it said.
It assured that the Ministry of Finance has taken note of all additional input made by various stakeholders during the engagement to further streamline Government’s expenditures.
Former CJ still picket
Former Chief Justice Sophia Akuffo yesterday returned to the premises of the Ministry of Finance, to join pensioner bondholders picketing to demand a total exclusion from the DDEP notwithstanding the assurances from government.
She first joined the bondholders on Friday leading to varied reactions among Ghanaians and some NPP stalwarts.
She threatened to sue the government if their pension funds are included in the debt exchange programme.
Leading NPP member of the NPP Gabby Otchere-Darko in a tweet stated that he does not get the “fuss” the former Chief Justice Sophia Akuffo made over the inclusion of pensioners in the Domestic Debt Exchange Programme.
“Why picket over an offer that you have the liberty not to accept?”, he quizzed.
Gabby added, “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”.
Responses
Former Justice Sophia Akuffo responded to Gabby yesterday in a manner that may provoke more banter in the media.
“Gabby Otchere-Darko can call me paranoid, but I don’t care.
“We are talking about people, we are talking about human beings, we are talking about people who have served this country and have served well and hard. Not easy service, when you’re not a member of government and you’re calling yourself a member of government”, the former CJ replied.
