An aspiring flagbearer of the New Patriotic Party (NPP), Alan Kwadwo Kyerematen, has cautioned government against including individual bondholders in the Domestic Debt Exchange Programme (DDEP).
According to him, vulnerable groups may lose their “appetite and desire” to save if the government goes ahead to include individual bondholders adding that this would be a dangerous thing that could happen in the country.
“When they invest money in bonds, it’s basically savings because instead of them putting the money under their mattresses, they are putting their money in secured instruments.
“If we touch the investments from these vulnerable groups, we are also making them lose the appetize and the desire for saving and that is the most dangerous thing that could happen to a country,” myjoyonline quoted the aspiring flagbearer.
He added that having a debate about including individual bondholders scheme is creating a platform for very serious negative discourse.
“In my view, having a debate about including individual bondholders and those involved in this collective scheme is creating a platform for very serious negative discourse which could potentially create both domestic and international problems for us,” he said.
Meanwhile, convener of the Individual Bondholders forum, Senyo Hosi, In a statement on January 24, 2023, commended the government for reaching an agreement with the government.
The government of Ghana and the Ghana Association of Banks announced that an agreement had been reached to make some amendments to the terms of the domestic debt exchange programme.
The amendment includes an agreement to pay a 5% coupon rate for each of the twelve new bonds, resulting in an effective coupon rate of 9%.
It also added “the removal or amendment of all clauses in the Exchange Memorandum that empower the Republic to at its sole discretion, vary the terms of the exchange.”
The individual bondholders stated that “with the banks onboarding the Domestic Debt Exchange Programme, the government is set to reach its 80% target.”
“The development reaffirms the need for government to exclude individual Bondholders, including individuals and Collective Investment Schemes (CIS), who account for less than 11% of the eligible bonds. Unlike the banks and other institutions who are set to benefit from various regulatory incentives, Individual Bondholders have no fallback nor incentives and will be condemned to shackled penury,” parts of the statement read.